Andrew Coflan is a China analyst at Eurasia Group. The opinions expressed in this commentary are his own.

The quarantines and local-level lockdowns put in place to combat the coronavirus outbreak will likely cause Chinese economic output to decline in the first three months of the year -- the first contraction in more than four decades for what was formerly one of the world's fastest-growing economies. Though the extent and duration of the downturn will not be known for several months, it is already becoming clear that Chinese President Xi Jinping will leverage the crisis to further bolster his power as the country's leader as he seeks to return China to what he views as its rightful position as a preeminent global power.

This may seem surprising given Xi's initial response to the Covid-19 outbreak. Xi disappeared from sight for more than a week just days after Beijing was forced to acknowledge the virus, spurring social media speculations and criticism of his aloofness. This reflected especially poorly on Xi because the ruling Chinese Communist Party has long predicated its legitimacy on effective governance, including delivering consistent economic growth and rising standards of living.

So why is Xi poised to emerge from this crisis stronger than ever?

First, state-owned enterprises (SOEs) will be a key channel of post-outbreak stimulus. Xi has overseen a renaissance of the country's SOEs, forcing mergers to create national champions in key sectors, including rail, nuclear and renewable energy and building materials, among others. And with economic activity constrained by the measures taken to combat the coronavirus, SOEs will take on an even larger national role. They will likely receive much-needed financing, given their connections to state-owned banks. And Beijing is pushing for more infrastructure investment to support the economy, an area where SOEs play a prominent role.

Meanwhile, privately owned small and medium enterprises have been disproportionately impacted by the lockdowns that blanketed the entire country, as locally-owned shops and restaurants with thin cash margins and greater difficulties in restarting business activity face imminent bankruptcy. The result: a further shift in economic weight toward SOEs controlled by Beijing and focused on implementing Xi's policy priorities.

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