Nearly half of the U.S. firms in China say their global operations are already witnessing an impact from business shutdowns because of the coronavirus outbreak, based on a ballot by Shanghai’s American Chamber of Commerce (AmCham).
Around 78% of the respondents also stated they don’t have ample staff at their Chinese plants to resume full production, as public health constraints make it tougher for employees to return to their jobs after an extended vacation.
The survey polled 109 companies with manufacturing facilities in Shanghai, Suzhou, Nanjing, and the wider Yangtze River Delta.
48% of respondents stated plant shutdowns have already influenced their world supply chains, while nearly all others expect an effect in the next month, the survey reported.
Cities throughout China have been in lockdown since an extended Lunar New Year holiday last month, while travel bans and quarantine orders have been set in place across the nation in efforts to curb the virus from spreading.
This has disrupted financial activity all through the world’s second-largest economic system as factories and companies struggle to reopen, throwing world supply chains into disarray.
The government has promised support for industries and sectors that are worst affected, especially those involved in the production. Authorities have instructed banks to lower rates of interest for qualified companies and tolerate larger levels of bad loans while pledging to cut taxes and fees.