China F&A Monthly: April 2020
On April 8, the Chinese government lifted the 76-day lockdown in Wuhan, the epicenter of the coronavirus outbreak in the country. With the reopening of all cities, China will be one of the first in the world on the road to recovery, but it will be bumpy.
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Report summary
There are still concerns over imported cases and rising asymptomatic cases, which are preventing a fuller resumption of consumption. Moreover, economic downturn and a high unemployment rate are associated with lower consumer spending as a result of their effects on income, although the income elasticity of food & beverage is generally low. Meanwhile, the global coronavirus pandemic is escalating around the world, which poses threats to the international food supply chain. Potential supply-side disruptions could lead to rising prices in products with high import dependency, such as soymeal, shrimp, beef, etc. Weak overseas demand will also impede the export of Chinese agricultural products.