PHEIC label has limited impact on China's foreign trade

The World Health Organisation (WHO) labeling the novel coronavirus a global public health emergency (PHEIC) will have an impact on China's foreign trade, said an expert, but added that the degree and pattern of it will only be revealed in time.

Bai Ming, deputy director of the Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said on Saturday: "In the short term, even if the WHO does not announce PHEIC, countries will decide whether to trade with China depending on the situation of the epidemic. The announcement by the WHO is equivalent to a strengthened reminder."

It is still too early to tell the overall complex impact of the epidemic, he said.

The current epidemic has affected China's transportation and logistics, which will indirectly affect foreign trade, as many foreign businessmen cannot come to the country, Bai added.

At the same time, other countries will increase safety inspection of exported goods from China. The failure of domestic manufacturers to start working after the Spring Festival holiday will also affect export orders, he pointed out.

According to Bai, compared to 2003, when China's economy suffered due to the severe acute respiratory syndrome (SARS), the foreign trade structure of China has changed, with services trade increasing rapidly. The outbreak may affect services trade for now, with other countries taking China's place, but he is confident it will bounce back once the outbreak is over.

"In the medium to long term, although the epidemic has impeded China's foreign trade to develop smoothly, I believe that China can overcome difficulties and continue to move towards the goal of a great trade country."

The WHO, while declaring the outbreak a public health emergency of international concern on Thursday, has praised China's response to the outbreak.

Despite the announcement, the UN body stressed it does not recommend restrictions on trade and travel.