(Yicai Global) Feb. 19 -- International investors need not be too concerned about the impact of the novel coronavirus outbreak as it will not affect the long-term upward trend of the Chinese economy nor sway China's determination to continue opening up and implement reforms, the country's ambassador to the European Union said.

While the epidemic has delayed the resumption of factory production after the extended Chinese New Year holiday and reduced demand for services, the fallout will be limited, short-term and controllable, Zhang Ming, head of China's mission to the EU, said yesterday as the two prepare to celebrate 45 years of diplomatic relations.

Pro-active measures taken by China to manage the spread of the disease have been acknowledged by the World Bank as playing a key role in stabilizing global markets, Zhang said. The International Monetary Fund is also supportive of the fiscal, monetary and financial action taken by the Chinese government.

The People's Bank of China injected CNY1.7 trillion (USD243 billion) into the financial system earlier this month. The government has also introduced a raft of measures including tax cuts and loan extensions for both domestic and overseas companies to help minimize the impact of the epidemic.

There are several positive signs that business is getting back to normal, Zhang said. Air, rail and water transport networks are operating as usual. More than four-fifths of power generation companies are back at work, while 94.6 percent of major grain producers and processors as well as 96.8 percent of petrochemical firms have resumed operations. Almost 80 percent of face mask and protective clothing makers are back at work, he added. Foreign firms such as Tesla, US conglomerate Honeywell International and Dutch airplane maker Airbus have also reopened for business.

The epidemic's impact on the world economy will depend to a large extent on how other countries respond to it, he said.

As part of the anniversary celebrations, China and the EU are organizing several forums for high-level exchanges, Zhang said. They have accelerated investment talks and have already achieved breakthroughs in two rounds of negotiations held this year.

Editor: Kim Taylor