Although the biggest concern related to the coronavirus in China has to do with health, especially after the World Health Organization (WHO) declared the international emergency, the pandemic will also have economic consequences due to a drop in consumption in the country.
This drop is concerning for the Spanish food sector and its exports, since China is the second most important destination outside the European Union (after the United States), with purchases worth more than one billion Euro.
More attractive following the imposition of US tariffs
The Trump Administration's decision to impose an additional tax on EU agro-food imports threatens to take some companies out of the market, which made China attractive as a way to compensate for some of the ground lost in the US.
The spread of the Wuhan coronavirus and the measures decreed by the Chinese authorities to control the pandemic have coincided with the celebration of the Chinese New Year, on January 25; a time that, according to industry sources, is characterized by higher levels of consumption than usual.
“At the moment, we are hearing reports about consumption going down, since people are not going out and many supermarkets have closed. Electronic commerce, which is a very important channel for us in China, is also affected, as logistics companies have stopped working,” says a spokesperson of Calidad Pascual.