Initially the Chinese government extended Chinese New Year holidays by one week to 10th of February. Although no further suspension was announced, many companies have a hard time to properly restart for several reasons. Some simply lack of manpower. Especially in big cities a large part of employees went back to their hometown for Chinese New Year, often far away in another province. Due to the travel bans that are now gradually being lifted, they could not return to their workspace immediately or have to stay home/in quarantine for 14 days subsequently. Some companies arranged a “work-from-home” policy, other companies who rely on blue collar workers were forced to stay closed.

A big problem for factories is also the limitation of transport. That affects not only products for export but also plants that rely on just-in-time supply for their feedstock. Authorities from different provinces require a permit for transportation across provincial borders. Sometimes reloading to another truck is required at provincial border. And for heavily impacted provinces like Hubei, Guangdong and Zhejiang the logistics are very limited.

In general the situation is very untransparent due to regulations changing every day. In case you require more information, please contact us directly.