MANILA – The coronavirus disease 2019 (Covid-19) is slowing down trade and tourism between Asean and China, IHS Markit Chief Economist for Asia Pacific Rajiv Biswas said in an e-mail.
Biswas said the manufacturing output of Asean countries particularly Singapore, Malaysia, Thailand, and Vietnam, slowed down due to the large-scale disruption in factories in China.
The world’s second largest economy is also a key export market to these Asean member states.
“The biggest economic shocks to the Asean region from the Covid-19 epidemic have been to the nations with the strongest trade linkages to China,” he said.
According to the Asean Integration Report 2019, China is Asean’s largest trading partner since 2009.
Between 2010 and 2018, Asean’s total trade with China has more than doubled from USD235.5 billion to USD483.1 billion.
China’s share to Asean’s total trade also increased from 11.8 percent in 2010 to 17.2 percent in 2018.
Asean’s export to China over eight years grew by 7.4 percent to USD198.7 billion, increasing China’s share to Asean’s export revenue from 10.7 percent in 2010 to 13.9 percent in 2018.
But Asean’s import from China grew faster than its outbound shipment to the economic giant.
The region’s import from China rose 11.1 percent between 2010 and 2018 to USD284.5 billion. China’s share to the bloc’s inbound shipment expanded to 20.5 percent in 2018 from 12.9 percent in 2010.
Moreover, Asean’s tourism sector is likewise hit by the coronavirus outbreak as most member-states implemented a temporary ban of flights from China.
Some countries have suspended issuing visa to Chinese nationals and not allowing their citizens to travel China.
“The slump in international travel has hit many parts of Asean’s tourism-related economy, including hotels, restaurants, retail stores and airlines. With the epidemic now also spreading to other countries worldwide, including South Korea and Italy, the negative impact to Asean’s tourism sector is widening as tourism and business travel globally is slumping on coronavirus fears,” the economist said.
In 2015, tourism shared 12 percent of Asean’s gross domestic product. (PNA)
