Coronavirus Outbreak Tests World's Dependence on China – The New York Times, Nytimes.com
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As British Airways cancels flights and automakers close factories, businesses consider how to cope without the country’s vast factories and thriving consumer culture.
A car manufacturing plant jointly operated by Honda and the Chinese automaker Dongfeng in Wuhan, China . (Credit … Agence France-Presse – Getty Images
() Jan. , , 6: 16 am ET
HONG KONG – The world is quickly learning how much it depends on China. Ford and Toyota will idle some of their vast Chinese assembly plants for an extra week. Apple is rerouting supply chains. Starbucks has closed thousands of stores and is warning of a financial blow. On Wednesday , British Airways suspended all flights to mainland China, while United Airlines and Air Canada are joining the growing number of carriers reducing service. Japan’s leaders are bracing for a possible hit. Hotels and tour operators across Asia are watching fearfully as the world’s largest source of tourism dollars tightens its borders. The (mysterious, pneumonialike coronavirus) that has killed more than a hundred people and sickened thousands has virtually shut down one of the world’s most important growth engines. Desperate to slow the fast-moving virus, the Chinese authorities have extended the country national holiday to Feb. 3, and crippled land, rail and air transport. Entire cities have shut down.
Ford, which does not have any operations in Wuhan, said several of its major plants would nevertheless be idled until Feb. . A spokesman declined to disclose further details. The factories in four cities churn out nearly half a million vehicles a year, or an average of 9, (cars a week.) Businesses in other countries are also trying to determine the impact. In Japan on Tuesday, Yasutoshi Nishimura, the minister of state for economic and fiscal policy, told a group of reporters that, “If the situation takes longer to subside, we’re concerned it could hurt Japanese exports, output and corporate profits. ”Chinese visitors account for about percent of all foreign tourists, and Chinese companies are major buyers of Japanese-made components, like semiconductors and lenses. Thailand, Chinese sightseers spend nearly $ 25 billion annually, totaling about a quar ter of tourist spending. “Chinese tourists are the number one tourists to Thailand, Said Yuthasak Supasorn, the governor of the Tourism Authority of Thailand. Mr. Yuthasak said in an interview that the government was exploring ways to compensate business owners who have lost money from the drop in tourists over the past few weeks. The government was even considering reducing parking fees for airlines and excise tax on jet fuel to lure more tourists, he said. Anan Buates, , runs a business driving tourists. Chinese tourists are crucial to his business. So he grew alarmed when tour operators started making last-minute cancellations as the coronavirus emerged. Then, last week, China canceled overseas group tours. “It’s their right and it’s their policy to prevent the spreading of the coronavirus, ”Mr. Anan said. Still, he knows he faces a daunting challenge. “We survive the whole year because they come the whole year. ” Eimi Yamamitsu contributed reporting from Tokyo, Ryn Jirenuwat from Bangkok and Cao Li from Hong Kong. (Read More)()
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