COVID-19 has caused an uproar in China and around the world since the end of 2019. It is coming violently, and it has serious impacts on the Chinese economy since the time of the Chinese New Year. With the passage of time, in the spring of 2020, the new virus ravaged the world’s major economies; the world would fall into recession in 2020, and the financial markets had fluctuated sharply. “Taking back time and making up for the loss” is China’s general tone for promoting economic and social development in the context of the current epidemic (Chen, Dou, & Long, 2020). How to get rid of the adverse effects of the epidemic on the society and to promote better social development are topics of practical significance. We study the background of the epidemic which impact on China’s domestic and foreign economic, as well as the fluctuations in the world economy. We analyze various economic issues arising in the current context, investigate relevant data, apply the Mundell effective market classification principle for relevant analysis, and put forward reasonable suggestions accordingly.