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Coronavirus, trade war a ‘double whammy’ for foreign firms in China, EU chamber boss says
- Containment measures for disease dashed hopes that trading conditions might improve, says chairman of southwest branch of EU Chamber of Commerce in China
- Authorities must now provide firms with clear guidelines and support to help them get back in business
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The coronavirus epidemic has dashed the hopes of foreign companies operating in China that trading conditions in the region might be about to improve, according to the head of a European Union industry group.
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After more than 19 months of uncertainty and difficulties caused by the US-China trade war, the signing of an interim deal to end the conflict on January 15 gave many foreign firms reason to be optimistic. But their hopes were short-lived as the virus outbreak delivered a painful “double whammy”, said Paul Sives, chairman of the southwest branch of the European Union Chamber of Commerce in China.
While cities across China are trying to get back to normal after mandatory lockdowns and other restrictions, for many the damage has already been done.
Many in the business community have complained of manufacturing being severely disrupted and that the emergency measures introduced to keep firms operational have resulted in massive cost increases, lengthy delivery delays and, ultimately, the loss of customers.
“Some member companies have already moved certain production lines to factories they have elsewhere in the world, to supply the goods that they cannot supply from China,” Sives said.
In its effort to contain the outbreak, which has left more than 81,000 people infected and over 2,700 dead, Beijing implemented a raft of measures, including locking down Wuhan – the city at the centre of contagion – by closing major traffic routes and shutting down non-essential manufacturing and other businesses.
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