The West Bank city of Hebron is separated from the epicenter of China's virus outbreak by more than 4,000 miles and a ring of Israeli checkpoints. But even here the economic symptoms of the outbreak are starting to appear.
Palestinian markets have long been flooded by low-cost Chinese goods. Traders in Hebron, the largest Palestinian city and a commercial hub for the territories, fear that if the outbreak and quarantine efforts continue they will have to switch to more expensive alternatives, passing higher prices on to consumers in an already weakened economy.
Their concerns point to the potential for wide-ranging ripple effects from the outbreak in China, the world's largest exporter.
The health crisis has already thrown the global travel industry into chaos and threatened to disrupt supply chains around the world that depend on China. That a city deep inside the Israeli-occupied West Bank is so reliant on Chinese goods illustrates the perils of global economic integration.
The illness, recently named COVID-19, first emerged in December in the central Chinese city of Wuhan. Since then, the virus a new type of coronavirus has spread to about two dozen countries and infected more than 73,000 people.
It has caused more than 1,800 deaths, nearly all in China. No cases have yet been identified in Israel or the Palestinian territories, but merchants have felt the impact and fear the worst is yet to come.
Samer Abu Eisha, a children's clothes wholesaler in Hebron, has been importing from China for more than two decades. He has a permit from Israel that allows him to fly from Ben Gurion International Airport to China's Guangzhou province every two months so he can place orders with factories there and supervise output.
But business ground to a halt last month as the outbreak gathered pace. Israel and neighboring Jordan have suspended all flights to China, shipments have been put on hold, and Abu Eisha says his agent in China is confined to his home because of a local quarantine.
If the situation continues he'll have to explore other options. The effects will vary from business to business, with some already feeling the pinch and others preparing to switch up supply lines and raise prices in the coming months.
There is an alternative in Turkey, but it's not the same. It's not the same quality or the same workmanship or the same price," he said.
"It's hard because all the raw materials also come from China, so things will be more expensive. He estimates he'll have to raise prices by up to 30 per cent, which could pose difficulties in the local market. Decades of Israeli restrictions have hindered economic development in the West Bank, leaving many Palestinians reliant on low-cost imports.
The economy here is terrible. In Palestine it's zero, or less than zero, Abu Eisha said.
Bilal Dwaik, another Hebron merchant who imports women's clothing from China, was supposed to travel there later this month but had to cancel his trip because of the outbreak. He says if it continues the effects will be felt across the region.
The economies of the whole Arab world are not productive, they aren't self-sufficient," he said. "It's all dependent on imported goods, on Chinese goods.
Disclaimer: No Business Standard Journalist was involved in creation of this content
