Most US firms in China expect coronavirus outbreak to hit revenue, survey finds

Some companies polled by Shanghai’s American Chamber of Commerce said they were speeding up plans to move operations out of mainland

Transport bans and strict public health measures have disrupted economic activity

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China’s economic growth may drop to 5 per cent or lower because of the outbreak, according to a government economist. Photo: Bloomberg

Published: 8:01pm, 7 Feb 2020Updated: 5:45pm, 14 Feb 2020

The majority of US firms with operations in China expect a virus outbreak to cut revenue this year, and some are accelerating plans to shift their supply chains out of the country, according to a poll by Shanghai’s American Chamber of Commerce.

Nearly a quarter of the firms forecast revenue would fall by at least 16 per cent this year due to the outbreak, while over a fifth said it would decline by 11-15 per cent. Only 13 per cent of respondents said revenue would see very little or no impact from the virus.

The survey covered 127 companies, including 20 with China-sourced revenues of over US$500 million and 27 with China revenues of US$100 million to US$500 million.

Sixteen per cent of respondents expected China’s gross domestic product to fall by more than 2 per cent due to the outbreak.

The death toll from the virus in China has topped 600, with more than 31,000 people infected. Widespread transport bans and strict public health measures have disrupted economic activity in much of the country, and factory closures are starting to ripple through global supply chains.