Results of the second edition of the survey “The impact of the novel Coronavirus Pneumonia on the Italian business community in China”

30 March 2020

Dear Members and Friends,

 

Today the China-Italy Chamber of Commerce (CICC) published the results of the second edition of the survey “The impact of the novel Coronavirus Pneumonia on the Italian business community in China”.

 

One month after the first edition of the survey conducted by the China-Italy Chamber of Commerce, aimed at analyzing and comprehending the opinions of its Members during the delicate phase of containment of the spread of the COVID-19, the CICC addressed them again in order to follow the evolution of the economic impact of the epidemic in 2020 in terms of revenues, business strategies and activities in China. Moreover, also their state of mind during the equally difficult period of spread of the COVID-19 in Italy has been analyzed. Ultimate purpose of the survey was to thoroughly understand the priorities of the membership base in order to start new supporting initiatives.

 

Click on the flyer to download the results of the Survey.

 

 

The survey was conducted from the 18th to the 24th of March, 2020 and the sample, composed by 180 representatives of the business community, confirmed the excellent participation found in the first edition.

 

The companies which joined the survey are present nationwide (with a significant 67,21% of respondents located in East China, followed by 17,23% located in North China and by 14,44% in Guangdong). Consistent with the first edition of the survey, the respondents reflect the characteristics of the CICC Members. In fact, a significant number of participants is active in the manufacturing sector (47,22%) with the almost equal presence of companies operating in trading/e-commerce and intangible services (B2B, legal services, strategic and tax consultancy, etc.). The size of the participating companies is mostly small and medium (28,89% with less than 10 employees, 22,22% between 10 and 50 employees), but also larger companies with 100 to 500 employees have been represented (24.44%), while large Italian multinationals are under-represented, a constant of this type of investigations conducted by the CICC.

 

Data shows that CICC Members are strongly involved in relaunching their business in China. The answers related to the supply chain were fairly positive: more than 93% of CICC Members restored its chain of supply (completely for 39,44%, partially for about 54%) and almost 80% did not make any changes in China not either worldwide despite the critical conditions. More than half of the CICC Members also declares that the operations have returned to normal even in a context of difficulties related to the containment measures of the COVID-19. In fact, among them, more than 27% admits that, despite efforts, sales have not returned to pre-crisis levels.

 

Despite the great effort made by companies to accelerate the process of returning to full capacity of business activities, the outlook for 2020 is rather negative and affects both Italian companies in China and the Headquarters in Italy. In fact, about 28% of the sample expects a decrease in global revenues greater than 30%, while over 22% is more moderate in the assessment, assuming a decrease from 10% to 20%. Forecasts for China are slightly more positive (27% expects a drop in sales ranging from 10% to 20%, 26% instead expects a more negative impact of 30%). There is enormous concern among the Italian business community in China about how the situation is developing in Italy. For 58%, the impact that the epidemic will have on the business of Italian companies in China will be very serious.

 

Moreover, in line with what already emerged in the first edition of the survey, small and medium entrepreneurs are most affected by the crisis linked to the epidemic  (35 companies out of 92 expect a drop in sales of more than 30%), together with the operators in the service sector (education, tourism etc), intangible services and trade.

 

The difficulties identified by the participants for the next six months are mostly contingent and fall within a short-term vision, far more tied to the market than to the containment measures of local governments. Among these, 70% expressed the expectation of a sharp reduction in demand, followed by about 47% by the fear of not being able to guarantee the service requested to the customers due to an extension of logistical limitations, while about 32% fears supply difficulties.

 

The Italian business community in China expects the support of the Chinese Government in terms of tax reductions (for over 66% of respondents), clear and transparent subsidies and policies (over 42%), while by the Italian Government is expected greater support, especially in terms of incentives for foreign investments (over 52%) and facilitating access to credit (over 40%).

 

According to the Chairman of the China-Italy Chamber of Commerce, Davide Cucino “The desire to fast resume business activities emerges clearly once again even if we are aware that the economic goals can only be achieved through a gradual recovery due to the complex worldwide situation that has arisen, and despite the support measures put in place by the Chinese government. " "We also hope that a solution can be found soon - adds Cucino - for those entrepreneurs who are currently unable to return to China and that represent 23 percent of respondents". 

 

Click here to download the press release.  

 

Note: to consult the results of the first edition of the survey “The impact of the novel Coronavirus Pneumonia on the Italian business community in China”, click HERE

 

Kind Regards,  

CICC Team

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