"It is definitely the second shockwave for the Chinese economy," said Xing Zhaopeng, an economist at Australia & New Zealand Banking Group. The pandemic across the world "will affect China manufacturing through two channels: disrupted supply chains and declining external demand."
With orders canceled, supply chains disrupted, and payments delayed – the road to recovery in China is going to be a bumpy one at best.
It is still hope for left wing coup.
The coronavirus outbreak's impact on China's logistics system is easing, enabling stable shipments via China's online channels, according to industry sources.
Although sales in China's physical stores are still weak with an around 30-40% decline on year, transactions and shipments via online shopping platforms have already returned to normal levels, with Hubei province - the epicenter of China's coronavirus outbreak - being the only exception, the sources said. The logistics system in Hubei has yet to be fully restored.
The recovery of the logistics sector is also enabling shipments from manufacturers whose production is fast resuming, the sources said. At the moment, most makers' production lines see around 80% utilization rates, much higher than February's 40-60%.
China's consumer price index (CPI), the main gauge of inflation, grew 5.2 percent year-on-year in February, the National Bureau of Statistics said on Tuesday. The growth, in line with market expectations, was slightly lower than 5.4 percent in January. On a monthly basis, consumer prices edged up 0.8 percent.
Food prices, which account for nearly one-third of weighting in China's CPI, went up 21.9 percent year-on-year in February, contributing 4.45 percentage points to the rise in the index as the novel coronavirus outbreak disrupted market supplies and demands.
Things are only beginning in China.
Handset shipments in the China market fell 56% on year to 6.384 million units in February 2020
March fall can reach 70%, as during February they mostly sold old stock.
While weekday traffic is getting back to normal, weekend congestion is essentially zero in Beijing and Shanghai although somewhat better in Shenzhen.
Production capacity for non-contact or hand-held infrared forehead and ear thermometers has been fully booked through the end of May at major Chinese assemblers including Dali Technology, Andon Health and Yuyue Medical Equipment & Supply. But their assembly operations have yet to return to normal due partly to employee returns still hindered by travel and traffic restrictions in some Chinese cities and partly to tight supply of components and materials.
sorry @Vitaliy but this is just too funny....I heard Pence's strategy will be abstinence ! Yeah...that fee.org article is just pure capitalist propaganda. And that's proven by them using the already discredited animal market theory discussed therein. It's these types of think tanks who dream up criminal ideas, like using secret bioweapons on their economic competitors to get advantage.
Keep to the topic :-)
US Capitalist Party methods against epidemic are much better than China :)
OUR VICE PRESIDENT ( COVID19 Epidemic Czar Mike Pence) and team praying against the Corona Virus. Jonathan Williams sent me this photo from the White House. How blessed we are to have a government who prays.
Official White House Photo by D. Myles Cullen
In 2015, as Governor of Indiana, Pence allowed an HIV outbreak to spread, choosing prayer over a clean needle exchange. As a result of Pence taking the time to “pray on it,” citizens of his state suffered and died. In addition to rejecting evolution, promoting gay conversion therapy, and allowing a deadly HIV epidemic to spread by choosing prayer over science, Pence has also claimed that condoms are “too modern and too liberal.” Bottom line: Conservative Christians cheer while reasonable people are horrified at the sight of Pence’s team trying to pray away the coronavirus. Weep for the nation.
Well, if they need to resort to satellite it means something :-)
The Maoist totalitarian state is being reborn in China under Xi Jinping.
First words of this "article" are enough :-)
Wet markets continue to operate, despite the evident risk of transmission of diseases from animals to people.
As far as I know this is total bullshit.
The regime just announced that anyone returning to Beijing from elsewhere in the People’s Republic of China must report to local authorities and self-quarantine for two weeks.
It is just preferable to note that US regime (and all other right ones :-) ) is doing... exactly the same :-)
And the source, well, stinks - Founded by *F.A. Hayek** and alikes, upon government request in 1946 as anti communist propaganda machine.
Why Chinese Communism Could Be the Final Casualty of the Coronavirus
https://fee.org/articles/why-chinese-communism-could-be-the-final-casualty-of-the-coronavirus/
Short update before bigger Monday update
In a Feb. 7 document, the Hubei provincial government gave orders to the provincial “disease control” agency: “Organizing a 24-hour internet monitoring team to surveil online posts from all websites… Remove all negative and harmful information.”
The document also noted that authorities removed “4,431 posts which severely damaged public opinion” and censored 3,066 types of negative comments from Feb. 1 to Feb. 8.
All it will end with second Cultural Revolution, it seems.
On the supplier side, we have suppliers — you know, iPhone is built everywhere in the world. We have key components coming from the United States, we have key parts that are in China, and so on and so forth.
When you look at the parts that are done in China, we have reopened factories, so the factories were able to work through the conditions to reopen. They’re reopening.
Big guys wrote the numbers they want.
The Shandong CDC daily new infection numbers ranged from being 1.36 times to 52 times greater than the officially published data by the Shandong health commission and China’s National Health Commission.
As of Feb. 25, the Shandong government stated that there were a total of 755 infections in the province. But the internal document showed that 1,992 people had tested positive for the virus via nucleic acid testing as of Feb. 23.
Chinese media now in total crackdown state, reporting only mostly positing things, asking people to go to work.
90% of people I talked with (and know for long) do not believe official media now.
China is a main exporting country for automobile components, accounting for 37.1% of Japan's total import value in 2019 and 31.1% of that of South Korea.
They are also main producer of non original replacement components, so hit on third party services will be tremendous.
Also note that modern logistics channels work almost without warehouses (to boost profits and "efficiency"). So, will be triple fun.
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