Coronavirus outbreak in China has strong impact on foreign trade of Turkish companies
As many factories in China have stopped production after the New Year holiday extended due to epidemic outbreak caused by the new type of coronavirus the effects of this decision are also being felt in the World Trade. In fact, Turkish exporters have also experienced the effects of this undesired situation in Turkey’s foreign trade activities regarding both positive and negative aspects.
The new type of coronavirus, dubbed Kovid-19 by the World Health Organization, continues to spread and take lives, mainly in China.
After the slowdown of production and exports in the chemical, ready-to-wear and steel sectors of China, Turkish companies have observed substantial increase in orders received. It is understood that with many factories in China halting, some global buyers have been directing their orders to Turkish companies. On the other hand Turkish companies follow developments in the mining and natural stone sector, an area of high volume of exports to China, closely.
The first assessments of the effects of the outbreak on Turkey’s foreign trade are observed to differ according to sectors. For example, the natural stone industry which exports about $ 700 million to China annually has been carefully monitoring the impact of the virus on the market. The disruption of loading and unloading at ports and the deceleration of construction projects in China which is by far Turkey’s biggest customer in marble and travertine is observed to have a negative impact on shipments to this country.
On the other hand following the postponement of Xiamen Natural Stone Fair in China, where Turkish exporters have made connections, it seems unlikely that Chinese buyers will come to Marble Natural Stone fair to be held in Izmir on April 1-4. It is reported that Turkey has now started sending masks to China, instead of stones. China is a market worth US$ 700 million for Turkish stone exporters and the volume of exports from Aegean region to China in February has shrunk by 54.5 percent.
On the other hand ready wear garments, steel and chemistry sectors are the main sectors in which big buyers in the EU and US market have come into contact with suppliers from Turkey instead of China. It is stated that Turkish companies with large capacity, especially those making ready-made clothing based on woven fabrics, will play an effective role in filling the gap brought about by the cessation of production in China.
