Beijing Dispatch #1 – Update from the Ground in Beijing

2 月 5, 2020CCBC Insights

Beijing Dispatch #1 – Update from the Ground in Beijing

2 月 5, 2020CCBC Insights

The streets are eerily quiet across the city as the outbreak of the novel coronavirus fuels forward. Business here in the capital seems to have ground to a veritable standstill, even in comparison to the normally stagnant period surrounding the Chinese New Year holiday, which has now been officially extended to reduce domestic travel and, thereby, the spread of infections. Hotel occupancy across Mainland China has dropped to low single digits, according to one local General Manager, and those restaurants that remain open are largely vacant. Citizens are having their temperatures taken across hundreds of checkpoints throughout the cities, and masks are essentially mandatory throughout the few available public venues, as well as taxis.

 

Transit within and outside of the country continues to be strangled by domestic restrictions and international cancellations, and the Canadian news continues to be dominated by headlines of the impending evacuation of Canadians and their families from around Wuhan and beyond. Several members of the Canadian Embassy team here in Beijing are now on the ground in Hubei to coordinate these efforts, and we wish everyone all the best for a smooth return to Canada and throughout what will certainly be a trying two-week quarantine period.

The outbreak itself, while not fatal for 98% of those affected, remains isolated to comparatively few global cases. The government response here, while verging on frustrating for many residents, is generally being praised for being swift and intensive. There will, absolutely, be devastating economic effects, but the extent both in severity and timeline is still to be determined. Stock markets and currency will continue to see declines. Tourism and hospitality will be among the worst affected, with the broader manufacturing sector coming up quickly behind. Watch for additional government measures and capital injections to maintain market calm.

The news, as our readers are all well-aware, is not good. However, in light of these ongoing policy measures, I urge patience and calm, and remind our members of a few key things. Firstly: China, for most foreign organizations, has always been a long-term play. We have been through times like this before, and we will come through it again. We hope that the Canadian business community will continue to pursue a measured approach in your corporate reactions to this issue, based on facts and professional advice.

 

With that in mind, I encourage Canadian firms operating in China to remain in consistent communication with your vendors, customers, and government contacts. Try to develop an understanding of the viability of your supply chains. While transpacific travel will be certainly reduced for the foreseeable future, continue to cultivate potential leads remotely and support your network here. Your Chinese partners will remember that you continued to support the relationship during this challenge.

 

CCBC’s offices in Beijing and Shanghai remain open to service our members. The network here remains resilient, and we continue supporting each other – our active Beijing WeChat group (QR code below) regularly shares updates and debates commercial strategies. I hope to hear from members regularly in the coming weeks and months.

 

All the best from Beijing, and please do not hesitate to reach out to me (Noah[at]ccbc.com.cn) or my colleague Edward Dai (Edward[at]ccbc.com.cn), Director of our Shanghai chapter, for any and all inquiries.

Canada China Business Council (CCBC)