COVID-19, a novel Coronavirus SARS-CoV-2, has wreaked havoc on global financial markets, economies, and societies. For example, this study looks at the impact of COVID-19 on the Chinese economy and its policy responses (fiscal, monetary, and institutional). This study also examines future issues. This study is timely and essential for policymakers and investors worldwide because of China’s size, contribution to global growth, and growing influence. The research shows that the presence of COVID-19 in China has global implications. Because of the virus threat, foreigners avoid mixing with the Chinese. Global tourists have cancelled their plans to visit China, and Chinese tourists cannot visit foreign countries. The rapid spread of the COVID-19 in China has halted normal life. The intensification of the COVID-19 may have long-term effects on China’s economy.