Chinese factories remain closed due to Coronavirus outbreak
Stealing lives of many people, the Coronavirus has been making a major negative impact on the Chinese economy as many factories in various Chinese provinces remain shuttered and some regions have extended shutdowns.
Initially, many factories were advised to resume work early February. However, due to Coronavirus quarantine efforts, the reopening could be extended even further for many factories — including Apple’s largest manufacturer Foxconn, CNBC reported.
As a result, analysts believe that it would affect both Chinese and global economies.
Even if some factories resume their work, workers returning from other provinces have to go through quarantine requirements of around 2 weeks.
“It’s uncertain whether factories could resume production this week amid local quarantine efforts and traffic controls. Indeed, many authorities and enterprises at local levels are targeting Feb. 17th or later to restart business, and the resumption is likely to be a phased approach,” the investment bank stated.
The bank added, “there are still uncertainties as to how quickly the coronavirus situation will be brought under control and when production and goods transportation services will be ramped up to normal levels.”
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