The epidemic of the new coronavirus in China raises concerns about trade turmoil

The outbreak of Covid-19 in southern China has curtailed activity in some of the country’s largest ports, raising concerns that further turmoil in international trade could push up export prices.

In Guangdong Province, one of China’s most important manufacturing bases, more than 100 new cases have been reported since late May, and the government is taking strict measures.

Processing at the salt pan container terminal in Shenzhen plummeted after suspending exports for almost a week last month after employees tested positive. Authorities are implementing coronavirus precautions, which has significantly reduced the number of berthed vessels.

The slowdown at terminals that exacerbated China’s Nansha and Faucet ports has made global transport vulnerable to epidemics in the country, where new infections have remained low compared to other major powers over the past year. Embossed

“It’s a matter of terminal size,” said Lars Michael Jensen of Maersk, an international shipping company. “It is an active terminal in all markets, one of the largest terminals in the world, and has some sort of spillover effect.”

In addition, as overseas demand for blockade-related products such as electronic devices and home appliances increases, China’s own trade performance, which has grown rapidly under the pandemic, will also be under pressure. China’s surge in exports is supporting China. Quick recovery From Covid-19’s first economic blow.

According to official data this week, China’s exports increased 27.9% year-on-year in May, but were at their lowest levels last year. I missed the expectation.

“It will affect trade and production data in June,” said Iris Pan, chief economist for Greater China at ING. “This generally pushes up the prices of electronic products, which can affect China’s export prices and, ultimately, US and European import prices.”

The world’s shipping has been hit by a series of tensions over the past year: Shortage of containers And the problem that the crew cannot disembark at the port.In China, some manufacturers Transferred to rail to transport goods to Europe Instead, quantity remains only a small part of the shipping industry.

“Other ports in China are likely to be just as cautious,” said Jiwei Chang, chief economist at Pinpoint Asset Management. “This increase in the Covid case in Guangdong, coupled with a pandemic in the Indian and Southeast Asian economies, a shortage of ships, and rising commodity and shipping costs, could contribute to higher inflationary pressures in other countries.”

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“I think this is just the beginning. It may not be as lucky as last year,” said Penny Chen, a shipping agency in Shenzhen. He is behind in shipping schedules at Shenzhen ports. Said.

Local authorities are very sensitive to the increase in cases, as the central government imposes strict sanctions on the local authorities where Covid-19 reappears. All residents of Guangzhou are required to undergo a test, and cities throughout the state prohibit people from leaving if the test is negative.

Additional report by Qianer Liu in Shenzhen

The epidemic of the new coronavirus in China raises concerns about trade turmoil

Source link The epidemic of the new coronavirus in China raises concerns about trade turmoil

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