How does this fit into their cunning plan? Alan? I'm sure you will have a theory.
Their economy has been shrinking for years, they just lied about the figures. Most economists agreed on this, and that eventually you would not be able to hide it anymore.
There has been, as much as, a 40% vacancy in major cities for the past 5 or 6 years. The government keeps on saying this would be taken care of with migration from rural areas to urban, but the majority of that happened in the decade prior. This has been known for years, and if you look online for ghost cities in China, you will find a lot of examples.
The communist thought if you built it, they would come, but not take into account there are just not enough "theys" to fill what was being built.
There have been other well document flaws in the Chinese economy on the last 5 years if you actually paid attention to those type of stories.
From a propaganda stand point, now is the perfect time to start admitting this, since this virus can give you cover. However, the downtown will probably turn out to be huge and made worse by businesses moving elsewhere, so the death numbers they are putting out really will make little sense to explain for the drop alone.