European Companies in China See ‘Severe’ Impact From Outbreak
(Bloomberg) -- Hundreds of European companies with operations in China say the coronavirus outbreak is forcing them to lower annual business targets, according to a survey.
Almost 90% of a total of 577 respondents said they were seeing medium to high impact, with half planning to revise their financial goals. The results highlight the fragility of global business amid an epidemic that has claimed more than 2,800 lives and 82,000 victims across the world.
Europe’s economy is particularly vulnerable to trade and supply-chain disruptions, with many companies relying on cross-border manufacturing. The survey, which was conducted between Feb. 18-21 by the European Union Chamber of Commerce in China and its German counterpart, suggested that operational restrictions and conflicting regulations were inhibiting companies.
Read more: Coronavirus Hitting U.S. Companies in China Hard, AmCham Says
“The results show that the impact has been severe overall, with every single survey respondent suffering the consequences to varying degrees,” the report said.
The chambers added that nearly half of the respondents predict a double-digit drop in revenues for the first half of 2020, and a quarter expect a drop of over 20%.
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