EU Companies in China Severely Impacted by Coronavirus, EU Chamber Says
The coronavirus outbreak has had “severe” impacts on European Union companies operating in China, according to a Feb. 27 report by the European Union Chamber of Commerce in China. The report, which surveyed more than 550 companies, said that almost 90% reported a “medium to high impact” and about half forecasted a double-digit drop in revenue for the first half of 2020. Companies routinely face “unpredictable rules, highly restrictive quarantine demands and extensive pre-conditions to restart operations,” the report said, and often experience “multiple onerous restrictions” while passing through provinces, delaying deliveries. “The patchwork of conflicting rules that emerged from the fight against COVID-19 has produced hundreds of fiefdoms, making it next to impossible to move goods … across China,” Jorg Wuttke, European Chamber president, said in a statement.
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Due to concerns over the U.S.-China trade war and the coronavirus outbreak, EU companies have put “diversification at the top of their agenda,” the report said, adding that companies “fear they have become over-reliant on China” and “long-term sentiment may never be the same.” The Chamber said this should be a “wake-up call” to China to lessen restrictions on market access.