13/04/2020
- China’s famed Yiwu International Trade Market, a barometer for the health of the nation’s exports, has been hammered by the economic fallout from Covid-19
- Export orders have dried up amid sweeping containment measures in the US and Europe and restrictions on foreigners entering China have shut out international buyers
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP
The Yiwu International Trade Market has always been renowned as a window into the vitality of Chinese manufacturing, crammed with stalls showcasing everything from flashlights to machine parts.
But today, as the coronavirus pandemic rips through the global economy, it offers a strikingly different picture – the dismal effect Covid-19 is having on the nation’s exports.
The usually bustling wholesale market, home to some 70,000 vendors supplying 1,700 different types of manufactured goods, is a shadow of its former self.
Only a handful of foreign buyers traipse through aisles of the sprawling 4-million-square-metre (43 million square feet) complex, while store owners – with no customers to tend to – sit hunched over their phones or talking in small groups.
A foreign buyer visits a stall selling face masks. Photo: Ren Wei
“We try to convince ourselves that the deep slump will not last long,” said the owner of Wetell Razor, Tong Ciying, at her empty store. “We cannot let complacency creep in, although the coronavirus has sharply hampered exports of Chinese products.”
Chinese exports plunged by 17.2 per cent in January and February combined compared to the same period a year earlier, according to the General Administration of Customs. The figure was a sharp drop from 7.9 per cent growth in December.
After riding out a supply shock that shut down most of its factories, China is now facing a
second wave demand shock, as overseas export orders vanish amid sweeping containment measures to contain the outbreak around the globe.
Nowhere is that clearer to see than in Yiwu. The city of 1.2 million, which lies in the prosperous coastal province of Zhejiang, was catapulted into the international limelight as a showroom for Chinese manufacturing when the country joined the World Trade Organisation in 2001.
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Before the pandemic, thousands of foreign buyers would flock to the mammoth trade market each day to source all manner of products before sending them home.
But the outbreak, which has claimed the lives of more than 113,000 people and infected more than 1.9 million around the world, is proving a major test for the market and the health of the trade dependent city.
Imports and exports via Yiwu last year were valued at 296.7 billion yuan (US$42.2 billion) – nearly double the city’s economic output.
Businesses, however, are facing a very different picture in 2020. Most traders at the market say they have lost at least half their business amid the pandemic, which was first detected in the central Chinese city of Wuhan last year.
Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries – Tianqing
“Yiwu is the barometer for China’s exports,” said Jiang Tianqing, the owner of Beauty Shine Industry, a manufacturer of hair brushes. “Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries.”
Jiang said his business was only just hanging on thanks to a handful of loyal customers placing orders via WeChat.
“I assume it will be a drawn-out battle against the coronavirus,” he said. “We are aware of the fact that developed economies like the US and Europe have been severely affected.”
The Yiwu market reopened on February 18 after a one-month long hiatus following the Lunar New Year holiday and the government’s order to halt commercial activities to contain the spread of the outbreak.
Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
But facing the threat of a spike in imported cases, Beijing banned foreigners from entering the country in late March – shutting out potential overseas buyers.
Despite the lack of business, local authorities have urged stall owners to keep their spaces open to display Yiwu’s pro-business attitude, owners said.
“For those bosses who just set up their shops here, it would be a do-or-die moment now since their revenue over the next few months will probably be zero,” said Tong. “I am lucky that my old customers are still making orders for my razors.”
The impact of the coronavirus is just the latest challenge for local merchants, who normally pay 200,000 yuan (US$28,000) per year for a 10-square-metre (108 square feet) stall at the market.
Traders were hard hit by the
trade war between China and the United States when the Trump administration imposed a 25 per cent tariff on US$200 billion of Chinese imports last year.
At the time, some Chinese companies agreed to slash their prices to help American buyers digest the additional costs.
“But it is different this time,” said Jiang. “Pricing does not matter. Both buyers and sellers are eager to seal deals, but we are not able to overcome the barriers [to demand caused by the virus].”
Even when businesses can secure orders, it is a struggle to deliver them
Ma Jun, a manager with a LED light bulb trading company, said the only export destination for her company’s products was war-torn Yemen because it was the only country with ports still open.
It is a public health crisis that ravages not just our businesses, but the whole world economy – Dong Xin
Dong Xin, an entrepreneur selling stationery products, said he could not ship the few orders he had because “ocean carriers have stopped operations”.
“It is a public health crisis that ravages not just our businesses, but the whole world economy,” he said. “The only thing can do is to pray for an early end to the pandemic.”
Most wholesale traders in the Yiwu market run manufacturing businesses based outside the city, so a sharp fall in sales has a ripple effect on their factories, potentially resulting in massive job cuts.
Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
At Yiwu Port, an inland logistics hub full of warehouses where goods from the factories are unpacked and repacked for shipping abroad, container truck drivers joke about their job prospects.
“We used to commute between Shaoxing and here five times a week, and now it is down to twice a week,” said a driver surnamed Wang, describing the trip from his home to the shipping port, just over 100km away.
“At the end of the day, we may not be infected with the coronavirus, but our jobs will still be part of the cost of the fight against it.”
Source: SCMP
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03/04/2020
- ‘As two of the great countries on Earth, cooperation between China and the US could, and should, be used to bring a more positive outcome for all humankind,’ academics say
- ‘Political bickering does nothing to contribute to the healthy development of Sino-US relations, nor will it help the people of the world to rationally and accurately understand and cope with the pandemic,’ they say
Chinese academics have urged nations to cooperate to find a solution to the global public health crisis. Photo: AFP
A group of 100 Chinese scholars has signed an open letter calling on the
and China to put an end to their political blame game and work together to fight the
.
The signatories, who include former diplomats and academics from various fields, including political science, international relations and sociology, said that while the origins of the coronavirus remained unknown, hurling accusations achieved nothing but hurt.
Nations should stop “complaining, finger-pointing and blaming one another” and instead cooperate to find a solution to the global public health crisis, they said.
“Political bickering does nothing to contribute to the healthy development of Sino-US relations, nor will it help the people of the world to rationally and accurately understand and cope with the pandemic,” the scholars said in the letter published on Thursday in online news magazine The Diplomat.
“As two of the great countries on Earth, cooperation between China and the US could, and should, be used to bring a more positive outcome for all humankind,” it said.
The scholars also urged the two sides to put aside their bickering over where and how the disease originated.
“At this stage of the pandemic, the exact source and origin of Covid-19 remain undetermined, but these questions are unimportant and finger-pointing is demeaning and hurtful to everyone,” they said.
US and Chinese officials have sparred for weeks over the origins of the coronavirus, which was first detected in the central Chinese city of
Wuhan but has since spread around the world, infecting more than 1 million people and killing close to 53,000.
Donald Trump has repeatedly referred to the pathogen as the “Chinese virus”. Photo: Bloomberg
US President Donald Trump has repeatedly referred to the pathogen as the “Chinese virus”, while other US politicians have said it was created in a Chinese laboratory. For China’s part, foreign ministry spokesman Zhao Lijian suggested the coronavirus
might have been carried into the country by US soldiers.
China’s ambassador to the US
Cui Tiankai said in an interview on American television last month that speculating about the origin of the virus was “harmful”, but the finger-pointing on both sides has plunged relations between the two countries to a new low.
The open letter was the idea of Wang Wen, executive dean of the Chongyang Institute for Financial Studies at Renmin University in Beijing, who said its aim was not only to show the willingness of China’s intellectual elite to promote solidarity and reduce tensions, but to make clear that the priority right now was saving lives.
“We did not criticise anyone in the letter, or mention any names. We did not want to fuel the current disputes and confrontations,” he said.
“Most Chinese intellectuals are peaceful, rational and constructive, and thankfully we quickly reached consensus on the content of the letter.”
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The scholars said that after months of battling the coronavirus and seeing the situation at home improve, China now wanted to share its experience and knowledge with other countries as they seek to contain its spread.
“Chinese people have made unimaginable efforts and sacrifices to achieve hard-won results,” Wang said.
“We are grateful for the support of the international community, including donations from American friends, during the most critical stage of the fight … and we are willing to share our experiences with other countries and provide all available assistance to them.”
Wu Sike, a former Chinese special envoy to the Middle East, was among the signatories to the open letter. Photo: Xinhua
Among the other signatories were Wu Sike, a senior fellow at the Chongyang Institute for Financial Studies and former special envoy to the Middle East, and Wang Yiwei, an international relations professor at Renmin University, who described the Covid-19 pandemic as a “global issue that overrides geopolitics concerns”.
Chinese President Xi Jinping and Trump agreed in a telephone call last week to work together to contain the spread of Covid-19, but critics have questioned how long their cordiality can last against a backdrop of rising China-US tensions over trade, the media and regional security.
Source: SCMP
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