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Title : China's Industrial Core Is Now At A Standstill In Response To The Spread Of The Wuhan Coronavirus. Global Supply Chains Being Impacted
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China's Industrial Core Is Now At A Standstill In Response To The Spread Of The Wuhan Coronavirus. Global Supply Chains Being Impacted

Chinese Premier Li Keqiang on Jan. 27 visits the site of a new hospital being built to treat patients of a new coronavirus on the outskirts of Wuhan, one of China's major manufacturing hubs. © Reuters

Nikkei Asian Review: China's industrial core at standstill as cities extend shutdown

Shanghai and Suzhou bar operations for another two weeks

BEIJING -- The coronavirus outbreak in China is hitting the country's manufacturing nerve centers, as measures including an unusual decision to extend the Lunar New Year holiday lengthen plant shutdowns in industrial centers.

The Chinese government said Monday that the weeklong holiday would be extended by three days to Feb. 2 to curb the spread of the virus. Some local governments have gone further, such as Shanghai, which on Monday ordered all but certain essential companies, including utilities and supermarkets, not to resume business before Feb. 9.

The restrictions threaten to hit not only domestic manufacturers, but also foreign companies operating in the country -- which are concentrated in big cities like Shanghai -- and global supply chains that rely on Chinese output.

The city of Suzhou, a technology hub located northwest of Shanghai, on Sunday barred businesses from resuming operations before Feb. 8, according to China Central Television. More than 1,500 Japanese-affiliated businesses including Panasonic and Kobe Steel operate in the vicinity.

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Update: China Closes Foxconn, Johnson & Johnson, And Samsung Factories Amid Virus Outbreak (Zero Hedge)

WNU Editor: The expectation is that everything is going to return to normal within two weeks. I do not see that happening at all. This virus has not even come close to its peak, and no one has a clue on when that peak is reached.

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