This past week in China was punctuated with several major developments on the (newly renamed) Covid-19 outbreak: the return to work that never was, the passing of Dr. Li Wenliang, a new methodology for capturing infection and fatality rates, the ouster of both the Hubei and Wuhan Party chiefs, extensions of airline service disruptions – the list goes on. In this time of overwhelming media activity, as opposed to regurgitating the stories you are already reading, I am taking this opportunity to share some of the real business conditions that are being faced by our members across the country.

Of particular concern are some of the comments shared by members in the energy and commodities sector. In terms of domestic production, restrictions on movement are causing issues in regular maintenance and material deliveries. Development of new assets is at a full stop, with those same logistical impediments blocking the shipment of necessary equipment. Some have expressed that previous purchase agreements are being reneged upon in the face of reduced demand – and several companies are setting up legal task forces to explore force majeure. That said – concerns of some of those conducting business with major SOE’s has been more restrained, as companies are confident that the state-owned players will not allow this economic interruption to press beyond the first quarter and have the cash resilience to honor existing commercial commitments. The messages, clearly, continue to be mixed.

In the retail and agri-food/food service sector, expectations match reality. Generally, most retail spaces and restaurants have extended their closures an additional week at the very least – partially due to new rules restricting assembly of more than two individuals, debilitating audit requirements, and the lack of customers. Planned new store openings are being delayed. Exporters of food and consumer goods to China are seeing their sales channels clogged by reduced logistical capacity, with virtually no movement through brick-and-mortar retail verticals. A continued challenge is the availability of staff returning to their places of work – oftentimes a quarantine period of 14 days is being mandated or self-imposed.

At the CCBC, two unique initiatives were launched over the last couple of weeks to reduce pain points and offer support to those affected. The Council has opened a donation portal in partnership with the Canadian Red Cross to offer companies and individuals the opportunity to support the fight against the spread of the illness in China – we hope you will consider a contribution. Secondly, while Air Canada has unfortunately had to extend their Mainland China flight suspensions until the end of March, we have opened a WeChat group for the community to bypass the customer service phone line and get direct assistance in real time. AC’s team has been actively responding to and actioning requests during the Chinese business day to over 50 group members, including re-bookings and refunds.

Should you or your firm wish to take on a different type of role to demonstrate Canada’s solidarity with those struggling in China, please get in touch with me directly. The Canadian Embassy in Beijing, and Ambassador Barton personally, are keen to engage with the business community to understand and brainstorm alternative support ideas, both in the near and long term. Furthermore, note that the CCBC will be disseminating a survey in the near future to gather aggregate data on business issues, as well as offer government briefings to members in all our regional offices via WebEx. As always, our China offices are open for business, and we are here to offer assistance and understand your positions – please reach out to myself (Noah@ccbc.com.cn) or Edward Dai (edward@ccbc.com.cn) in Shanghai at any time.