asia.nikkei.com/Spotlight/...dstill-as-cities-extend-shutdown
China's industrial core at standstill as cities extend shutdown
January 28, 2020 03:13 JST
BEIJING -- The coronavirus outbreak in China is hitting the country's manufacturing nerve centers, as measures including an unusual decision to extend the Lunar New Year holiday lengthen plant shutdowns in industrial centers.
The Chinese government said Monday that the weeklong holiday would be extended by three days to Feb. 2 to curb the spread of the virus. Some local governments have gone further, such as Shanghai, which on Monday ordered all but certain essential companies, including utilities and supermarkets, not to resume business before Feb. 9.
The restrictions threaten to hit not only domestic manufacturers, but also foreign companies operating in the country -- which are concentrated in big cities like Shanghai -- and global supply chains that rely on Chinese output...
...Travel restrictions being adopted by a growing number of local governments pose problems as well. ...
Foxconn has decided not to reopen its smartphone component production site in Shanxi Province until Feb. 3, nearly a week longer than originally scheduled, according to a source familiar with the situation.
...The impact is especially severe in Wuhan, the epicenter of the outbreak, where authorities have shut down nearly all transportation. Automakers clustered in the city are struggling to rework their production plans in response to the lockdown.
Honda Motor, for example, handles about half its Chinese production at factories in Wuhan operated with a local partner. It had planned to resume operations Feb. 3, but the Japanese automaker now says it has not set a reopening date at this time...
The outbreak comes on top of recent moves by manufacturers to shift production from China to Southeast Asia in response to the U.S.-China trade war....
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