FACTORIES on mainland China may remain closed until February 10 to curb the spread of the coronavirus, according to Asia Pacific chief economist at London's IHS Markit Rajiv Biswas.
'There will be a big impact on trade because of the long period of forced holiday,' Mr Biswas said. 'The next question is, how will this impact demand in China?'
In the immediate future, the factory closures will reduce China's demand for imported materials because plants that aren't operating won't need supplies, Mr Biswas said.
The longer term impact is less clear. Currently, the rapid spread of the disease has dramatically slowed commerce in China, he said, reported UPI.
'It's escalating so rapidly,' said Mr Biswas, who is based in Singapore. 'There is a great deal of fear because there's not a good understanding of how to contain it. Now, because people are in this state of fear, they don't want to go out. They're staying home. They won't be buying as many things.'
The spread of the coronavirus through China is also raising concern among American shipping ports and industries.
'One of the things we're hearing is that it's possible some of their factories may remain closed until the virus is contained,' said port of Long Beach deputy executive director Noel Hacegaba. 'That means marine cargo won't be moving. It won't be leaving China. It won't flow into the United States.'
That also means China will not receive American goods, Mr Hacegaba added.
Typically, agricultural products - like soybeans - are the most frequent items shipped through the port of Long Beach, Mr Hacegaba said. Other leading exports to China include aircraft, machinery, electrical machinery, medical instruments and vehicles.
The disruption comes at a time when industries were expecting trade with China to pick up. US President Donald Trump and Chinese government leaders in mid-January signed a phase one trade deal - the first step towards ending an 18-month trade war between the two countries.
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'There will be a big impact on trade because of the long period of forced holiday,' Mr Biswas said. 'The next question is, how will this impact demand in China?'
In the immediate future, the factory closures will reduce China's demand for imported materials because plants that aren't operating won't need supplies, Mr Biswas said.
The longer term impact is less clear. Currently, the rapid spread of the disease has dramatically slowed commerce in China, he said, reported UPI.
'It's escalating so rapidly,' said Mr Biswas, who is based in Singapore. 'There is a great deal of fear because there's not a good understanding of how to contain it. Now, because people are in this state of fear, they don't want to go out. They're staying home. They won't be buying as many things.'
The spread of the coronavirus through China is also raising concern among American shipping ports and industries.
'One of the things we're hearing is that it's possible some of their factories may remain closed until the virus is contained,' said port of Long Beach deputy executive director Noel Hacegaba. 'That means marine cargo won't be moving. It won't be leaving China. It won't flow into the United States.'
That also means China will not receive American goods, Mr Hacegaba added.
Typically, agricultural products - like soybeans - are the most frequent items shipped through the port of Long Beach, Mr Hacegaba said. Other leading exports to China include aircraft, machinery, electrical machinery, medical instruments and vehicles.
The disruption comes at a time when industries were expecting trade with China to pick up. US President Donald Trump and Chinese government leaders in mid-January signed a phase one trade deal - the first step towards ending an 18-month trade war between the two countries.
WORLD SHIPPING