The coronavirus outbreak has hurt global demand, but its impact on China's foreign trade is only temporary, the Ministry of Commerce said on Thursday (05.03.2020), adding that authorities will launch more targeted support measures to stabilize supply chains.
The epidemic, which has killed more than 3.000 people and infected more than 80.000 in mainland China, has triggered a record contraction in the country's vast manufacturing sector, leading to production cuts and lost orders.
The virus has limited employee movements, caused blockages in international logistics and reduced global trade., especially intermediate goods, said Li Xingqian, director of the foreign trade department of the Ministry of Commerce, at a press conference.
However, sales in China's consumer market stabilized at the end of February.as workers gradually returned to work following success in some places of the efforts, Wang Bin, another official with the Ministry of Commerce, said at the same conference.
On Wednesday, a UN agency said that China's exports of parts and components are estimated to have reduced by 2% annually in February, at a cost to other countries and their industries of $50.000 billion.
Li added that exporters are facing great difficulties in maintaining orders, securing market share and fulfilling their contracts, but trade fluctuations caused by the health emergency are still within a reasonable range.
Amid concerns that the spread of the virus in South Korea and Japan could mean a second wave of disruption to Chinese factories, Li said electronics imports, for which China relies heavily on its neighbors, have so far maintained steady growth.
Domestic imports and exports have shown positive momentum with the reopening of businesses, Li said.
Source: Reuters
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