At the beginning of Chinese Lunar Year in 2020, the new corona virus infection spread rapidly from Wuhan then across China, the whole Chinese fighting against this epidemic. In order to avoid further infection, Chinese government provided strictly measures such as indoor quarantine and extended the CNY holiday etc. WHO announced that the new Corona Virus is listed as a public health emergency of international concern (PHEIC), which has aroused great attention within China and around the world.
Since the outbreak of the coronavirus, there’s no doubt this would be an enormous challenge for Chinese trade: delayed start of factories, blocked logistics, and restrictions on flow of people and goods… So what will be the impact on Chinese trade business? The following points are selected for your reference:
1. In view of the global attitude, customs of various countries have not taken any mandatory and severe measures against China imports & exports. The current measures are mainly focused on controlling population flows. So far, no country has announced suspension of trade business with China.
2. Official announcements not showing negative on China trade.
World Health Organization (WHO): Statement on the second meeting of the International Health Regulations (2005) Emergency Committee regarding the outbreak of novel coronavirus (2019-nCoV)
U.S. Centers for Disease Control and Prevention (CDC): Frequently Asked Questions and Answers about 2019-nCoV and Animals
https://www.cdc.gov/coronavirus/2019-ncov/faq.html
World Health Organization (WHO) Twitter：
3. As per the website data such as Google, B2B, there’s currently bit impact of the Corona Virus but not much fluctuates. An optimistic estimate is that if everything well controlled, the epidemic may lasted only a short time, and the impact on the economy may mainly limited to the first quarter of 2020.
4. Bai Ming, deputy director of the International Market Research Institute of the International Trade and Economic Cooperation Research Institute of the Ministry of Commerce, said that the 2019nCoV was listed as PHEIC, this would be a certain impact on China’s foreign trade, but this would not much serious as worries. It should be clarified that China does not listed as epidemic country. Even if WHO does not announced PHEIC, each country will also consider their trade decision with China based on the trend of the epidemic. Which means PHEIC is equivalent to an enhanced reminder.
5. Proof of Force Majeure, considering the inability to deliver goods in time, China Council for the Promotion of International Trade (CCPIT) can issue a certificate concerning the Corona Virus as a Force Majeure if necessary, to minimize the losses for exporters.
6. From the perspective of time, the first quarter had always been an off season for foreign demand, for most western countries, their Christmas and New Year consumption season has just passed. At the same time, the first quarter coincided with the Chinese New Year holiday. Therefore, over the years the export rate of first quarter was normally lower.
7. In the short term, it is unlikely the orders to be cancelled and move to other countries. Although Chinese manufacturers are currently facing the dilemma of delayed start and timely delivery, it is difficult for other country suppliers to increase capacity in soon. As long as we can well appease relationships with customer, orders will not be irreversibly transferred. Once production resumes, order losses in the first quarter can be made up.
8. Hubei Province was the most affected area by Corona Virus, however it’s foreign trade stays a small percent only (1.25% in 2019), assume it will not course huge impact on Chinese overall trade.
9. Compared with SARS in 2003 China ever faced, China has done much more effective actions in medical, prevention, population flows control and data transparency. All is more accurate than a dozen years ago. No matter from the assembly of materials, medical workers across the country to the establishment of the “Huoshenshan” and “Leishenshan” hospitals in ten days, which well reflect the determination and efforts of the Chinese people to fight against the coronavirus.
10. Thanks to the government’s strong support, the Chinese medical team’s unparalleled wisdom and China’s powerful medical technology, everything is under control. To against the virus, Chinese government took effective actions, Chinese people seriously follow government instructions to avoid the spread of the virus. We believe everything will resume soon.
China is a great country with strong sense of accountability. It’s speed, scale and efficiency are rare in the world, fighting with Coron Virus – it’s not only for China, but also the world!
In such a long history, the outbreak is only short-term, and cooperation is long-term. China cannot prosper without the world, nor can the world develop without China.
Come on, Wuhan! Come on, China! Come on, the world!
Post time: Feb-18-2020