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These are all the companies who have shut down operations in China over the deadly Wuhan coronavirus outbreak

Sahar Esfandiari   

These are all the companies who have shut down operations in China over the deadly Wuhan coronavirus outbreak
Finance4 min read
Wuhan China Virus

Businesses in Wuhan, China, are temporarily suspending operations and moving out employees in an attempt to limit the spread of a deadly coronavirus that has so far killed 80 and infected more than 2,800.

The city of Wuhan, where the virus first broke out, is one of China's biggest industrial hubs. Several large Chinese and foreign corporations operate there.

Household names including PepsiCo, German conglomerate Siemens, and French automaker Peugeot Citroen all have bases in Wuhan and the wider Hubei province.

The spread of the virus is predicted to have a damaging effect on the economy, and many businesses in the area have suspended operations in an attempt to contain the virus.

In this photo provided by Chen Yanxi, a nearly-deserted expressway is seen in Wuhan in central China's Hubei Province, Friday, Jan. 24, 2020. China's attempt to stop a deadly virus by cutting off access to cities with 25 million inhabitants is a step few other governments would consider but is made possible by the ruling Communist Party's extensive social controls and experience fighting the 2002-03 outbreak of SARS. (Chen Yanxi via AP)

Here are businesses who have been affected so far:

Hotels, restaurants, and fast-food chains most affected

The outbreak and quarantines came in the run-up to the Lunar New Year holidays, one of the busiest times for shopping, travel, and eating out in China.

As a result, the travel, hotel, and restaurant industries are most likely to be impacted by the virus, The Hollywood Reporter said, citing forecasters.

At least seven hotel companies including The Peninsula Hotels, Shangri-La Hotels and Resorts, Hilton, and Marriott International announced they will waive fees for changes or cancellation during the outbreak, the South China Morning Post (SCMP) reported.

Didi, the Chinese ride-sharing service, also said it would halt services in Wuhan on at noon on Friday - the day before the first day of the Lunar New Year - at the request of local authorities, the SCMP said.

McDonalds China

Fast-food chains operating in Wuhan and its surrounding area, including McDonald's, Pizza Hut, and KFC, are also among those affected.

McDonald's suspended operations in five Chinese cities - Wuhan, Ezhou, Huanggang, Qianjiang, and Xiantao - it told Business Insider's Mary Hanbury last week.

"We will decide on the time of resuming business in accordance with the development of the epidemic," the company said in its statement.

It will also monitor the temperature of all employees and send home all those who show symptoms of the virus, such as cold or fever, McDonald's said.

wuhan virus symptoms

KFC and Pizza Hut stores in Wuhan also shut down temporarily in response to the outbreak, Reuters reported.

Retailers were also affected, with H&M closing down a total of 13 stores in the region, according to The Japan Times.

Swedish furniture store Ikea also temporarily closed its store, which employs 500 people, last Thursday over concerns for workers' and customers' health, the SCMP reported.

Tourism and retail stocks that rely on Chinese demand - including Burberry, cruise giant Carnival, and British Airways owner International Consolidated Airlines Group (IAG) - also dropped sharply on Monday.

The car industry

A total of nine car factories - including Peugeot Citroen, Renault, Honda, and China's Dongfeng - are based in Wuhan, according to the SCMP. Dongfeng is the third-largest car manufacturer in China.

Honda told The Japan Times on Sunday it would evacuate 30 Japanese staff, family members, and employees on business trips in Wuhan.

wuhan virus china travel

Over the weekend, French auto conglomerate Groupe PSA - whose brands include Peugeot and Citroen - announced it would evacuate employees and their families from Wuhan and quarantine them in another unnamed Chinese city, before ultimately bringing them back to France, the Associated Press reported.

Groupe PSA said a total of 38 people would leave Wuhan, according to a statement cited by the Japan Times.

It's not clear whether the other auto companies in the region have plans to evacuate employees or shut down businesses.

Dongfeng had already halted production for the Lunar New Year holiday, the SCMP reported. It's not clear whether it will resume operations after the holiday.

Manufacturers are also suspending operations

Big manufacturing companies operating in the area include German multinational conglomerate Siemens,Chinese smartphone maker Xiaomi, and the electronic component maker BOE Technology Group.

Siemens said the company "adheres to the guidance from relevant authorities, and has furthermore put in place a series of measures to protect the health of our workforce," according to the SCMP.

It is not clear what the series of measures is, or whether the company will later suspend operations.

Street view after Wuhan government announced to ban non-essential vehicles in downtown area to contain coronavirus outbreak, on the second day of the Chinese Lunar New Year, in Wuhan, Hubei province, China January 26, 2020. cnsphoto via REUTERS

'Major panic in markets'

Wuhan, which is home to 11 million people, is one of China's largest cities. Apart from being an industrial center, it's also known as a large travel hub due to its central location.

S&P Global Ratings said last week that the coronavirus could knock 1.2 percentage points off China's growth rate, and market analysts warned that the virus could cause "shocks" to the national economy.

"The virus has become deadly and it has caused a major panic in markets," Naeem Aslam, chief market analyst at AvaTrade, said in a morning note reported by Markets Insider.

"Shocks to the Chinese economy always have ripple effects and the commodity markets are deeply affected by it."


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