Chinese Premier Li Keqiang on Jan. 27 visits the site of a new hospital being built to treat patients of a new coronavirus on the outskirts of Wuhan, one of China's major manufacturing hubs. © Reuters
Nikkei Asian Review: China's industrial core at standstill as cities extend shutdown
Shanghai and Suzhou bar operations for another two weeks
BEIJING -- The coronavirus outbreak in China is hitting the country's manufacturing nerve centers, as measures including an unusual decision to extend the Lunar New Year holiday lengthen plant shutdowns in industrial centers.
The Chinese government said Monday that the weeklong holiday would be extended by three days to Feb. 2 to curb the spread of the virus. Some local governments have gone further, such as Shanghai, which on Monday ordered all but certain essential companies, including utilities and supermarkets, not to resume business before Feb. 9.
The restrictions threaten to hit not only domestic manufacturers, but also foreign companies operating in the country -- which are concentrated in big cities like Shanghai -- and global supply chains that rely on Chinese output.
The city of Suzhou, a technology hub located northwest of Shanghai, on Sunday barred businesses from resuming operations before Feb. 8, according to China Central Television. More than 1,500 Japanese-affiliated businesses including Panasonic and Kobe Steel operate in the vicinity.
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Update: China Closes Foxconn, Johnson & Johnson, And Samsung Factories Amid Virus Outbreak (Zero Hedge)
WNU Editor: The expectation is that everything is going to return to normal within two weeks. I do not see that happening at all. This virus has not even come close to its peak, and no one has a clue on when that peak is reached.
5 comments:
Will this incentivize companies to find more locations? Reliance on China is a single point of failure.
Just Another nail in the coffin with respect to their economy.
Mike
Be careful what you wish for.
Bob,
You never cried before, you bitch.
I have a vested interest in China and the US both being strong. The last 20 to 25 years have not be a win-win in trade. It has been a WIN-loss in favor of China.
Consider an analogy. I know that is very mean of me. You don't have much experience Bob. Do you?! Your're a putz.
When you bring a second generator on line you do not debilitate the 1st. You being the second up to speed.
You don't need to now electrical stuff to know this concept although it is a nice analogy.
"You cannot strengthen the weak by weakening the strong."
Maybe it would just be better for all involved, if you played bingo everyday.
Poor Bobbi.
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