2/12/2020 As China returns to work, it is hardly business as usual - Profit by Pakistan Today

As China returns to work, it is hardly

business as usual
By Agencies - February 8, 2020

BEIJING: The Chinese economy will sputter towards normal on Monday after the
coronavirus outbreak forced an extended holiday, although numerous stores and factories
will remain shut and many white-collar employees will continue working from home.

The usually week-long Lunar New Year holiday was extended by 10 days in much of China
amid mounting alarm over an epidemic that as of Saturday morning had killed 722 people.

Huge cities including Beijing and Shanghai seem like ghost towns, with shops and
restaurants closed or empty, and as containment measures including transportation curbs
are enforced in many parts of the country. Some cities are keeping schools closed and
restrictions on movements remain.

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Many employers in the southern technology hub of Shenzhen are taking precautions to
prevent workers from returning in large crowds, asking those who have travelled from
elsewhere to self-quarantine for up to 14 days.

Calls to the hotlines of an NGO serving migrant workers in the nearby city of Guangzhou
have multiplied in recent days.

“People are asking, ‘what if my factory hasn’t put enough safety measures in place? Will
there be a notice suspending work again? How do I get into work if roads are sealed off?’”
said Ice Huang, a spokeswoman for the Inno Community Development Organisation.

Apple Inc said on Friday its retail stores in China would stay closed, even as it worked
toward opening its corporate offices and contact centres.

Apple supplier Foxconn plans only to “gradually” restart its factories with a view to resuming
full production in late February, a person with direct knowledge of the matter told Reuters.

While in Shanghai, the city government said Tesla’s factory would reopen on Monday.

The toll on China’s already-slowing economy has been heavy, with Goldman Sachs cutting
its first-quarter GDP target to 4pc from 5.6pc previously and saying an even deeper hit is
possible.

“It’s certainly not going to be a return to normal next week,” said Julian Evans-Pritchard,
senior China economist at Capital Economics in Singapore.

“The longer this disruption continues the higher the risk it affects employment and the
higher the risk of a much bigger hit on the economy,” he said.

TEMPERATURE CHECKS, HOME QUARANTINE

In Shenzhen, businesses looking to reopen were required to check the recent travel history
of all staff and implement temperature checks and prevention measures such as providing
masks. Similar guidelines were in place elsewhere.

Some businesses told Reuters that they were not sure when they would reopen.

“We’re still not sure we’ll be open on Monday,” Suki, who works in human resources for a
Belgian-owned manufacturing company in Shenzhen and declined to give her surname.

“We applied online to open five days ago but inspectors only visited today,” she said on
Friday.

Still, Sunday is set to be the peak travel day of the Lunar New Year period, an official from
the Transport Ministry said this week, as millions of Chinese return from their holidays.

US confectionary and pet food maker Mars said it was advising its China staff to continue
working from home until at least Feb 14 and providing masks, while apparel brand Agnes B

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2/12/2020 As China returns to work, it is hardly business as usual - Profit by Pakistan Today

said it had bought disinfectant to clean its offices.

Major tech companies such as Hangzhou-headquartered e-commerce giant Alibaba Group

have told staff to continue working from home beyond Feb 10 until further notice, people
familiar with the matter told Reuters. Alibaba did not respond to a request for comment.

One engineer who works for a mobile phone manufacturer company in Shenzhen said she
was told to return to work on Monday but was unsure whether to go. “It’s choosing between
earning enough to live and living,” she said.

Agencies

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