China’s emergency measures to halt the spread of Covid-19 have put this year’s top-level summit with the EU at risk and risk disrupting the global supply chain, the European Union Chamber of Commerce in China has warned, reported the South China Morning Post.
Even though Chinese officials said they were working to resume production, foreign businesses’ operations have been seriously disrupted and may be forced to look elsewhere for supplies, the Chamber said.
The group warned that manufacturers were not able to run at full capacity because of shortages of supplies such as masks and logistical problems caused by restrictions on movement.
Joerg Wuttke, president of the chamber, said the outbreak had made many businesses realise they had to diversify into other countries and avoid “putting all their eggs in one basket”. He said that while the Chinese market was “always a lure… people have now woken up to the fact that you must have a backup plan.” He continued: “You must have a good eye on diversity. And the China story, the only story, possibly is over.”