Foreign firms struggle to resume operations in virus-hit China

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Foreign firms struggle to resume operations in virus-hit China COVID19

BEIJING - Foreign firms are struggling to resume work in virus-hit China as they face disrupted supply chains, rising inventory and quarantine rules meant to contain the deadly epidemic, the EU chamber of commerce said Tuesday.

"The whole process is stuttering to get back as the magnitude of the challenges is just huge," Wuttke added.Many cities have imposed travel restrictions too, with about 56 million people in the hard-hit Hubei province virtually sealed off from the rest of the country. This makes it tough for foreign experts to come in if production plants are down, delaying their recovery, said Wuttke.

Supply chains remain disrupted, with many firms relying on other enterprises for parts, said Paul Sives, who chairs the EU chamber's southwest China chapter.It does not help that companies require massive amounts of masks -- that they cannot easily procure -- for employees before they can restart operations, he said.

A survey of 109 manufacturing firms by the American Chamber of Commerce in Shanghai released on Monday found that almost 80 percent of respondents did not have enough staff to run a full production line.

 

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