US companies say China revenues could drop by 50% as coronavirus spreads

• American companies have started to warn they could see their revenues from China cut in half if the coronavirus outbreak isn't contained by summer.
• Nearly half of respondents said they expect China revenue would fall this year if business cannot return to usual before April 30, the American Chamber of Commerce in China said.
• Efforts to contain the respiratory infection COVID-19, which has killed more than 2,700 and spread to at least 37 countries, have triggered widespread restrictions on travel and commerce.
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American companies have started to warn they could see their revenues from China cut in half if the coronavirus outbreak isn't contained by summer, according to a survey released Thursday morning.

Nearly half of respondents said they expect China revenue would fall this year if business cannot return to usual before April 30, the American Chamber of Commerce in China said in the February 17-20 survey. One-fifth of the 169 companies said revenue losses could be greater than 50% if the outbreak extended through the end of August.

Efforts to contain the respiratory illness COVID-19, which has killed more than 2,700 and spread to more than three dozen countries, have triggered widespread restrictions on travel and commerce.

That has upended supply chains and hammered broader business operations, stoking concerns about a global economy that was already expected to slow in 2020. On Thursday, Goldman Sachs forecast that the coronavirus outbreak could completely wipe out corporate earnings growth this year.

Greg Gilligan, the chairman of AmCham China, said there has been "a clear and significant negative impact" to member company operations, including through travel disruptions, reduced staff productivity, increased costs, significant drops in revenue, and more. But he added that it was unclear how long or severe the disruptions could last.

"However, for most of our members, it is still too early to tell how significant the long-term impact will be," he said.

China, the center of the outbreak, has slashed borrowing costs and pursued a slew of other stimulus measures in an attempt to soften the blow to its economy. In the US, the Federal Reserve said it would closely monitor COVID-19. Congress has also started discussions on an emergency spending package to contain the outbreak.