The new corona virus has largely paralyzed China. Supply chains are broken, bankruptcies threaten in the crisis. Now work in the second largest economy is to be resumed - not as easy as EU companies have to experience in the country.
Beijing (dpa) - China's radical measures in the fight against the novel lung disease cause great confusion and cause enormous problems for European companies in the country.
The EU Chamber of Commerce in China said in Beijing that conflicting local rules made it extremely difficult to resume work this week after the Chinese New Year holidays, which were extended due to the virus. "The scale of the challenges is huge," Chamber President Jörg Wuttke told journalists.
Supply chains are interrupted. Nor could products be shipped, which would require a mountain of paper. "It is a logistical nightmare," said Wuttke. Goods could not be brought to the customer or to the consumer. Wuttke appealed to the Chinese side: "Stop having conflicting regulations across the country." The authorities' action had to be better coordinated and coordinated.
In fact, a week ago, China's Prime Minister Li Keqiang called for "resuming work" and ensuring the supply of necessary goods. In view of the more than 70,000 infections and almost 1,900 deaths caused by the virus called Sars-CoV-2, the measures for foreclosure in the country have been tightened. The EU Chamber President assumes that the severe health crisis in the second largest economy will "not be over so quickly".
There are also shortages of spare parts from China on the world market. Since there are hardly any planes and ships, goods cannot be shipped. "Getting things out of China is challenging," said Wuttke. Because China's pharmaceutical industry is also badly affected, bottlenecks in antibiotics and other medicines could occur worldwide.
The Chamber of Commerce expressed complete incomprehension about the compulsory 14-day quarantine in Beijing for travelers from abroad and from the rest of China. Wuttke said: "It's funny that I can get on a plane in Beijing and don't get quarantined in Frankfurt." Conversely, travelers from Germany who are not affected by the virus would have to be isolated in China's capital.
The decision issued on Friday also contradicts the recommendations of the World Health Organization (WHO). "Who will get on a plane to China in Frankfurt if he comes into quarantine here," asked Wuttke. The instruction harms the business. "We are definitely very concerned."
Small and medium-sized companies in particular are badly affected by the crisis. Many might only be able to cope with two or three bad months. Bankruptcies threatened if the state did not come to the aid with loans and other support. "If this crisis continues for a month or so, it will be devastating for small businesses," said Paul Sives, a representative of the Chamber in Southwest China.
While some companies started to work again, there was a lack of suppliers. In an industrial park in his region, only 5 out of 50 companies would have started operating again. "The domino effect is catastrophic." But each local district has its own rules on how to restart production.
An example: Some local authorities required employees to have two face masks a day. The company had to prove a supply for two weeks. Other authorities have asked workers to change their masks every four hours, which includes getting to and from work. However, there are not enough masks in China, which prevents companies from starting work again.
"Bureaucracy and confusion are the most important words we hear from our members," said Carlo D'Andrea, representative of the EU Chamber in Shanghai. The heaters that remained on display in the office buildings were already a problem because there were fears that the virus could be spread by ventilation. It could not be worked because employees were sitting in the office in too cold temperatures and could catch a cold in this way.
For many companies, the epidemic is a "wake-up call," said Wuttke. It is realized that the dependency on China is too great "if this country goes down the drain". So it is considered "not to put all eggs in one nest" and to diversify more over the next few years. In any case, companies have already started to look elsewhere because of the trade war between the United States and China in the past year or two.
The standstill in China and the strict quarantine rules in Beijing also hinder cooperation between China and Europe. It remains to be seen whether EU Commission President Ursula von der Leyen's planned visit to Beijing on March 30 will come, "said Wuttke. There are also concerns that talks on the proposed investment protection agreement between the two sides will not progress. The EU negotiating team can no longer travel to Beijing.