Coronavirus: China’s small factories brace for ‘big hit’ as pandemic erodes overseas demand
- China says 60 per cent of small firms back at work, but many report orders from Europe and US are drying up as virus spreads around the globe
- Others fret that the outbreak may prompt multinational companies to reduce their reliance on Chinese-made products
Most Chinese manufacturers are on track to resume normal operations in April after months of crippling coronavirus restrictions, but the rapid spread of the pandemic is sapping international demand and presenting new challenges for under pressure businesses.
Weeks of quarantine and transport limitations that forced the closure of businesses across the country are gradually being lifted as the number of new infections drops, indicating Beijing's unprecedented controls have helped stem the spread of the virus.
While this has allowed Chinese firms to begin ramping up production, some contract manufacturers that rely on overseas customers say orders from the United States and Europe have started to dry up as the virus ripples through the global economy.