London (AFP)
If it is too early to measure the impact of the coronavirus on the world economy, which will depend on the duration of the epidemic according to the IMF, many international companies are exposed to penalizing consequences for their activity because of the importance of China, both as a market and as a producing country.
"There will most likely be negative consequences" on the economy in the first half of the year, but "it would be irresponsible to speculate on what will happen next," IMF chief Kristalina Georgieva said on Friday.
Travel and tourism
Main sector affected for the time being, transport and tourism. China has closed the doors of several of its cities and banned organized trips by its nationals inside the country and abroad, in an attempt to contain the contamination.
Several airlines, including Air France, British Airways, Air Canada, Lufthansa, American Airlines and Delta, have suspended their flights to mainland China. Countries like the United Kingdom, Germany and the United States advise against any travel there.
Tourist activities are not to be outdone. Disney has closed its amusement parks in Shanghai and Hong Kong. Several shipping companies such as MSC Cruises, Costa Cruises and Royal Caribbean have canceled cruises from Chinese ports.
technologies
Taiwanese giant Foxconn, the world's leading supplier of electronic components, will not reopen its Chinese factories until mid-February. "We are able to meet the demands of our customers while preserving the health of our employees," assured the subcontractor, who had already been confronted in the past with a viral epidemic, Sras, in 2003.
But many tech companies depend on Taiwanese society to manufacture consumer goods, from iPhones to flat-screen TVs and laptops.
"We are still collecting data and we are monitoring this very closely," said Apple boss Tim Cook on Wednesday. He said Apple has alternative suppliers. To take into account the uncertainties, Apple has however given a forecast of turnover for its second quarter wider than usual.
Automobile industry
Wuhan, the epicenter of the new coronavirus epidemic, is an industrial city where many international automotive groups have settled.
Present since the 1990s, the French PSA manages three factories there and employs 2,000 employees, including 38 expatriates. The latter were repatriated to France on Friday, and none of them is infected with the virus. The three factories of the group, which should have reopened on February 3, will remain closed until February 14, PSA complying with the instructions of the authorities. They closed on January 24 for the Chinese New Year holidays.
Renault, which has a production plant and a research and development center in Wuhan with its partner DongFeng, employs 2,000 people locally, including around fifty expatriates.
As for Nissan, it has started to repatriate staff from Wuhan.
For their part, General Motors, Fiat Chrysler and Ford Motor have implemented restrictions for their teams. Tesla electric car pioneer has warned that coronavirus could disrupt the ramp-up of its giant new factory in Shanghai.
Consumption
In a China where the epidemic is disrupting distribution networks and where vegetable prices are soaring, some multinationals have had to close all or part of their stores.
Starbucks, for which China is the world's second largest market, has closed half of its 4,000 outlets in the country.
"Several hundred" McDonald's restaurants have also kept their doors closed in Hubei Province, of which Wuhan is the capital. 3,000 other restaurants remain open.
Pizza Hut and KFC have also experienced store closings, imposed by their respective Chinese joint ventures.
Finally, after the cancellation of several international sports competitions, including the Alpine Skiing World Cup events, China announced Thursday the postponement of its 2020 football season.
In other sectors
US construction and construction equipment maker Caterpillar warned of "lingering uncertainties surrounding the global economy".
The group, which published pessimistic forecasts for its 2020 financial year, has suffered greatly from trade tensions, especially Sino-American, in the past two years.
The current coronavirus epidemic should not make things better for society, which provides equipment or services, be it industry, construction or the exploitation of raw materials, to businesses and individuals.
jit-cda-as-aro / soe / cj
© 2020 AFP