Our colleagues at the American Chamber of Commerce in Shanghai have conducted a mini-survey among their members, who are mostly based in the Mainland. You can read the full report here (click).
These are the highlights:
87% of companies responding believe the nCoV will have a direct impact on 2020 revenues;
24% expect revenues to fall by 16% or more;
16% of respondents expect China’s 2020 GDP to fall by more than 2% as a result of the nCoV ;
29% of respondents believe that their corporate headquarters does not sufficiently understand the potential economic impact of the nCoV ;
60% of companies are planning a mandatory work from home policy for their staff, with almost all offering optional work from home.
Indications from our members so far are that indeed resumption of production in the Mainland after the CNY break is slower than expected. Delays are to be expected from tier 2 suppliers and it’s too early to know what the situation will be further down the line: logistics, ports, vessel space, blank sailing etc. Some suppliers have indicated dates to resume later in February, others in March.
For all of our members who have business interests in China, especially those in Supply Chain & who have questions or stories to share, please do feel free to reach out to your BLCC team or to any of our Directors of the BLCC Board.