In cooperation with the Consulate General of the Czech Republic in Shanghai and CzechTrade, CzechCham has conducted a flash survey in reaction to the recent novel coronavirus pandemic. Between 6th -13th March 2020, we asked leading Czech manufacturers operating in China about the impact of COVID-19 on their businesses. Respondents represent a wide range of industries in China: manufacture & QA; lights manufacture and design; textile & shoe industry; electrotechnical industry; supplies for jewelry, watch, and textile industry; automotive production or machine tool industry.
Here is what we found:
COVID-19 pandemic has affected every single survey respondent, suffering the consequences to varying degrees. Czech firms in China anticipate a definite drop in revenues for 2020. Even though the majority of companies do not lack the necessary staff to resume full operations, vast majority experience reduced demand for their products or services.
86% of Czech companies had to temporarily suspend operations, but the majority of companies report that everyone is back to office/factory, or that some are back and some work from home.
While most firms are confident to go back to normal by the end of March, there is still a degree of uncertainty, as one quarter of respondents is still unsure.
Most anticipate a drop in revenues by more than 6%, however 29% still think it is too early to accurately forecast the impact.
Vast majority of Czech companies experience reduced demand for their products or services. Staff shortages seem to affect only a third of all respondents.
More than a half of Czech companies do not benefit from Chinese government support, those who benefit from the state support, mostly mention receiving discount on social security benefits. Other benefits include: preferential loans, water supply discount, electricity supply discount, lower tax, faster writing off certain types of equipment, or discounts on health insurance.
You can download the full report here.
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