Aerial photo taken on August 24, 2019 shows Tesla Gigafactory in East China's Shanghai. Photo: CNSphoto

China is turning into a new safe haven for foreign companies as their overseas business is disrupted by the spread of the coronavirus across the world while China, after weeks of combat against the virus, has recovered from the epidemic and the ensuing economic stagnation. 

In retail, one of the most affected sectors, business in China has almost fully resumed for some overseas brands. Apple, for example, has reopened all of its stores in the Chinese mainland but has announced it will close all stores outside of China until March 27, as the coronavirus fades in China but spreads fast overseas.

French jewelry brand Cartier has also reopened all of its stores in the mainland except those in Wuhan, Central China's Hubei Province, where the epidemic has been serious, one of the company's employees told the Global Times.

"So far we don't have plans to open new physical stores in China this year, but we are looking to make better use of online channels to boost sales," she said. Cartier has just opened an online store in tmall.com, an e-commerce platform under Alibaba Group. 

A source close to British Dyson told the Global Times that it is still confident in the Chinese market and will continue to invest in China, while a Hyundai Motor employee also expressed optimism about the investment prospects and the safe investment environment in China. 

Besides retail, foreign companies in other sectors didn't halt investment in China. A PR representative from Germany-based chemicals maker Wacker Chemie told the Global Times that in 2020, the company plans to further expand investment and capacity in China in downstream production.

"China is now our largest market in the world, and we must focus on developing our business here," she said, adding that Wacker's production and work rate have returned to normal in China. 

According to her, the company's global sales and logistics could be affected by the global spread of the epidemic. Some of the company's German staff have started telecommuting. The company also restricted business trips to regions that were severely ravaged by the epidemic. 

Experts said that with the coronavirus in check in China but spreading overseas, China is becoming a safe haven for foreign companies.

"The investment climate is not falling, but rising in China... China by far should be the safest and most stable place [in the world]," said Hong Tao, director of the Institute of Business Economics at Beijing Technology and Business University. 

Hong pointed to the fact that the coronavirus has largely subsided in China and the total infection numbers in overseas countries have surpassed that of China in less than two months. 

A retail expert surnamed Chen told the Global Times that if the virus continued to spread overseas, overseas consumers' demand for non-necessary goods will be slashed, and this will push foreign consumer goods companies to shift their business focus to China. 

"As China spearheads a global recovery in consumption, the Chinese market must become a sought-after destination for global brands," Chen said. 

Sang Baichuan, director of the Institute of International Business at the University of International Business and Economics in Beijing, said that with the change in the epidemic situation, especially the lack of proper control measures in Europe and the US, China has highlighted an effective management model, which is a huge support for investor confidence.

"At the beginning of the epidemic, many foreign investors saw the spread of the epidemic, the implementation of strong administrative measures, logistics and supply chain disruptions in China, but now the epidemic has eased and China's economy will gradually recover," he said. 

Hong also noted that although public aggregate consumption is decreasing in China, government consumption is on the rise. "There is no such thing as a breakdown or shutdown of the Chinese economy," he noted. 


Newspaper headline: Safe haven for overseas firms