Coronavirus and its consequences

Wuhan Coronavirus, as its name suggests, originated in Wuhan. Wuhan is the capital of the centrally located province of Hubei. The virus first appeared in December 2019 and is spreading widely across Hubei Province and other parts of China. At the time of writing this article, February 4, 2020, there are more than 20,000 people infected across China and nearly 200 cases in other countries. The number of infected people is increasing rapidly and a proper treatment for the virus has yet to be found. The virus can be transmitted from person to person, according to the World Health Organization. With the measure to extend the Chinese New Year (until February 9), authorities are struggling to control the virus. During Chinese New Year, Chinese people travel back and forth between the city or village where they work and where their families live. This means that people are on trains, buses, cars, and planes to travel around, which means that the possibilities of getting infected and spreading the virus are much greater within this travel period.

It is difficult to predict what the virus will do in the coming weeks. Some sources say the number will rise to at least 100,000, other sources say it will be much less. All we can do is follow the official news and hope that all people in China will overcome this crisis as soon as possible.

Impact on business

The Chinese government has extended the Chinese New Year vacation until February 10 and this may be extended again after that. People are required to stay home and take extra vacations or they can work from home; this is up to each company to decide. The Chinese government will lift these measures when the virus is more stable and under control.

Factories are not active at the moment; domestic logistics are barely available and when it does operate, they work for the government to provide medical aid and life necessities such as food. If production does not resume in the near future, many of our clients and more companies will face stock shortages and delayed goods. Our team is in daily contact with our customers’ production plants. When production resumes, our team will ensure the best production times with their usual quality. If you are concerned about your orders, please contact our team and find out what the impact will be for you.

Moving to other manufacturing countries in Asia seems like an option, but can be difficult due to the resources and supply chain within those countries. These other Asian countries also rely heavily on materials and raw materials from China.

Let’s hope this virus is stable and under control soon. It is affecting the local and global economy. More importantly, let’s hope that the affected people will recover quickly and that the families within China will be healthy and safe. The Chinese government is constantly working to overcome this virus and come out of the crisis much stronger.