China regulator says epidemic's impact on industry 'major' in Feb

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BEIJING: The impact of the coronavirus outbreak on China's various industries will mainly show up in February, a vice chairman of the country's state assets regulator said on Tuesday, as containment measures disrupt production and supply chains.

Authorities throughout China have implemented various curbs on travel and movement in order to contain the epidemic, which has killed nearly 1,900 and infected more than 70,000 in the mainland alone. Such steps in turn have hampered the ability of companies to resume production, receive raw materials or send products to clients, disrupting their operations.

More than 95% of central government-controlled companies in key sectors such as oil, communication, power and transport are in operation, Ren said. Peng Huagang, a SASAC spokesman, said during the briefing the regulator will encourage centrally held firms to extend or revise contracts with small- to medium-sized companies that are struggling to deliver goods or make payments due to the coronavirus outbreak.

The outbreak has had an impact on offshore projects and the state-owned firms will communicate with governments of relevant countries to ensure proper understanding of the situation, Peng added.

 

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