Posted on 04/13/2020 4:50:47 PM PDT by SeekAndFind
A large number of export-oriented Chinese factories were shuttered recently after they didn’t have enough orders to fill.
Some home appliance manufacturers also announced that they laid off employees because of a lack of export and domestic demand due to the pandemic.
As the outbreak of the CCP (Chinese Communist Party) virus, commonly known as novel coronavirus, became severe in January, much of China was placed under lockdown and factories halted production for more than a month.
In February, Beijing encouraged companies to resume operations as it grew concerned about an economic slowdown. But Chinese companies were worried that the virus could spread among employees; many factories remained closed.
As some factories reopened in March, they realized they faced a bigger challenge—having no orders to fill. Orders were canceled as the virus spread to other countries, which also adopted social distancing measures and reduced economic activity.
In 2019, China exported 17.23 trillion yuan (about $2.44 trillion) worth in products, 8.9 trillion ($1.26 trillion) or 51.65 percent from the private sector, according to statistics from China’s General Administration of Customs (GAC). Those products include electronics, electrical appliances, mechanical equipment and parts, textiles, and other labor-intensive products.
GAC’s deputy director, Zou Zhiwu, said roughly 499,000 Chinese firms import or export goods.
The majority of export-oriented firms are located in the south and east of China, such as the provinces of Guangdong, Zhejiang, Jiangsu, Fujian, and Shandong.
Since March 31, an increasing number of factories from these regions announced that they have stopped their production, after briefly reopening.
“Because of the pandemic, our customers canceled all their orders,” the Zhongshan Jiaya Garment Co. in Guangdong Province announced on March 25. “Our whole company will stop operations on April 1, and won’t reopen before July 31.”
(Excerpt) Read more at theepochtimes.com ...
Not surprised.
I am so sad (not)
That is what happens when countries depend a lot on exports to other countries.
Excellent. Starve to death you bastards.
L
When I was in business it never occurred to me that killing my customers was a good idea.
Shocked, not! China short term will get a standing eight count. Long term if Trump is reelected they will be knocked out cold.
This is what happens when the CCP proves themselves to be not trustworthy. When they lie and refuse to take responsibility, their people suffer.
With nowhere to sell their smallpox blankets, what will China do?
(Many items ordered from China for wuhanvirus testing turned out to be contaminated with wuhanvirus.)
My sentiments exactly.
Sad it took so long for Sheeple to see this
Better late than never I suppose
Too bad, so sad.
Heaven forbid but has anyone thought about this....
1. Will there be a domino effect???
“If one goes down we all go down.”
I’m guessing you weren’t an executioner.
This may have made sense in Adam Smith's day when there were only a few places with extractable ores, arable lands, good fishing, etc.
However, now that much of the economy is services, and factories can be built anywhere, pretty much everything can be done everywhere efficiently. The only difference is the cost of doing business, i.e. dealing with regulations and paying salaries.
So the freemarketeer model has degenerated into a race to the bottom where factories and phone banks are located in the countries with the fewest regulations and the lowest cost of living.
Someone needs to poke these freemarketeers with a stick and mention to them that things have changed and if we want to continue to have consumers in this country, then we also need to make sure that most of them are producers making salaries sufficient to buy all the crap they are making and services they are providing.
“When I was in business it never occurred to me that killing my customers was a good idea.”
Lol.
In theory, communists sell the rope to those they hang. Like most commie schemes, doesn’t work in the real world.
You wonder how the pyscho Chinese are going to balance this dilemma.
They could open an outlet mall in Wuhan
Let’s hope those factories weren’t the ones making the spare parts for your central A/C unit...
...a domino effect???
______________
There are still customers, it’s just that the delivery & installation folks are not allowed to enter the homes.
Not just appliances, either. If you want computer or IPS service in my area, the entire house must be strictly sanitized before they enter. All computer repair businesses are unreachable because the business offices are closed.
We looked at a property today. The owners and we were not masked and since we were mostly outside on a ridgetop with a wind blowing, we weren’t concerned. But, our realtor was masked and observed 6 feet of distance. DH shook hands with the owner. The realtor did elbow bumps.
Only a few people seem really spooked. The rest of us are more relaxed.
As for Chinese manufacturers: reap the whirlwind. Most of us are still alive and healthy and we will remember.
Excellent summation of the problem with free traitors.
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