China Says Trade to 'Further Deteriorate' Due to Global Spread of COVID-19
As China begins to rebound from the coronavirus COVID-19 outbreak (see 2003170043), it is preparing for sustained negative impacts on its supply chains due to the pandemic’s spread across the rest of the world, officials said during a March 30 press conference held by the State Council Information Office. China said its imports and exports fell by nearly 10 percent in January and February compared with the same period last year, and expects that trend to continue due to the fact that its supply chains are “deeply integrated” in regions being hit hard by the pandemic, such as Europe and the U.S.
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“The spread and expansion of the international epidemic will inevitably have a greater impact on our industrial chain, supply chain, and foreign trade exports, and this cannot be underestimated,” Xin Guobin, China’s deputy minister of industry and information technology, said during the press conference, according to an unofficial translation. “As the international epidemic spreads further, the situation of China's foreign trade import and export may further deteriorate.”
International demand for products, including goods from China, is “declining,” Xin said, which has caused “huge losses to some export-oriented enterprises.” Xin added that President Xi Jinping is “very concerned.” Xin said China will “strengthen the stability of the global industrial chain supply chain” and increase efforts to supply raw materials to the international market.
China released a March 30 guidance on exports of medical materials for strengthening “quality management” of those goods. China said it will release measures requiring medical goods exporters to be “in line with the importing [country’s] quality standards.” according to an unofficial translation. China also urged companies to “expand production capacity” and exports of medical supplies.