China struggles to revive manufacturing amid virus outbreak

BEIJING (AP) — Factories that make the world’s smartphones, toys and other goods are struggling to reopen after a virus outbreak idled China’s economy. But even with the ruling Communist Party promising help, companies and economists say it may be months before production is back to normal.

The problem is supply chains — the thousands of companies that provide components, from auto parts to zippers to microchips. China’s are famously nimble and resourceful, but they lack raw materials and workers after the most intensive anti-disease measures ever imposed closed factories, cut off most access to cities with more than 60 million people and imposed travel curbs.

In smartphones, an industry that relies on China to assemble almost all its handsets, some components suppliers say production is as low as 10% of normal levels, according to Nicole Peng of Canalys, a research firm.

“The bad news is that there will be further impact, and the impact is worse than a lot of people initially expected,” said Peng.

Travel and retail businesses that need Chinese customers have suffered the most so far from the partial shutdown of the second largest economy. But brands including Apple Inc. say it is starting to disrupt their supplies.Analysts warn the longer that disruption lasts, the more damage will spread to wider industries and other economies.

Global brands have used low-cost Chinese labor to assemble goods for three decades. Now, they increasingly depend on China to supply auto, computer and other components. D disruptions can make this country a bottleneck, choking off their sales.

The most optimistic forecasts call for bringing the virus under control by March, allowing manufacturing to rebound. Gloomier outlooks say the outbreak might last until mid-May or later. Or, as the World Health Organization warned this...