China is among the leading business hubs of the world, and the outbreak in the country is surely affecting the economy. The roots of big tech giants lie in the land, but lately, a temporary shutdown had to take place. Google, Amazon, and Microsoft, being lead techies had to take urgent measures to save its employees from the infection.
Compromising on the finances, the firms have restricted all operations linked to China, Hong Kong, and Taiwan. The employees are also asked to avoid traveling to the said states. Those who are already inside the borders are advised to move and work from home while those who were already on lunar year holidays can get them extended.
This reflects how tech giants value the lives of their employees. On a number, Google got 4 of its offices closed in China. Similarly, Starbucks shuts 2000 of its outlets. Other organizations have also stepped forward taking preventive measures to save the staff from the disease.
A spokesperson from Amazon says, “Out of an abundance of caution, we are restricting business travel to and from China until further notice and encouraging our employees to follow the health and safety guidelines provided by international health agencies”
Facebook has forwarded instructions advising employees to avoid visiting the country until the situation comes under control. Flights to and from China, specifically Wuhan have been greatly affected as well.
Following the list, automotive industries like General Motors and Toyota, have also extended the Lunar Year holidays, and the companies shall remain shut till 9 February. Both the firms have got their plants closed in the country. Other car companies have also asked the staff to return as soon as possible. Not ignoring the efforts of PSA, Honda, and Nissan which have implemented urgent plans to evacuate the employees residing under the umbrella of the epidemic.
Undoubtedly, the virus has brought big losses to China’s economy, as Wuhan is China’s seventh biggest city and holds the position of a prominent motor manufacturer. The grind in China’s economy will eventually have a huge effect on the globe.
U.S Federal Reserve Chairman, Jerome Powell, addressing the economic situation, says, “China’s economy is very important in the global economy now, and when China’s economy slows down we do feel that,”
“Not as much though as countries that are near China, or that trade more actively with China, like some of the Western European countries.”
China has been adding a big chunk to the global economy, having its share in crude oil imports, tourism, consumer goods and much more. The economic environment should expect the worst trends for the first-quarter earnings of 2020.