Despite a bitter and protracted trade war with China, U.S.-based multinational companies are pledging millions of dollars to support relief efforts during the coronavirus epidemic, with donations ranging from surgical masks and gowns to food and research for a vaccine.
The fast-moving virus emerged just as companies were hailing phase one of the trade deal, ending an 18-month tit-for-tat that roiled markets and threw multinational companies into its crosshairs. Attempts to halt the spread of the coronavirus have slowed the Chinese economy, with several airlines canceling flights to China, car plants suspending operations, restaurants such as Starbucks and McDonald’s temporarily closing hundreds of stores across the country, and some countries closing ports to passengers and cargo. Almost 600 people have so far died from the disease, and 28,000 remain infected.
With such deep economic ties to China, multinational companies are motivated to donate to support relief efforts, Steve Orlins, the president of the National Committee on U.S.-China Relations, told NBC News.
“This is obviously an incredible disaster and its part of the corporate social responsibility that is embedded in corporations to donate at this point,” he said. “Either they have Chinese-Americans in their businesses who feel that they should be supportive of China or they have big businesses in China and feel they should step forward and they are.”
Apple's CEO Tim Cook said the company will donate to groups on the ground to help support people affected by the virus, noting that "We send our love and support to the many impacted by the Coronavirus." The Bill & Melinda Gates Foundation announced Wednesday it will commit up to $100 million to improve detection, isolation, and treatment efforts.
Walmart, which has more than 400 retail stores and 19 distribution centers across 170 cities in China, partnered with a Shenzhen-based non-profit organization to donate $143,000 for medical supplies and local relief efforts in Hubei province, the epicenter of the outbreak.
“I can’t help but take pride in the way our teams come together to support their communities,” Judith McKenna, CEO of Walmart International, said in a statement.
The hedge fund Citadel and Citadel Securities, a global market maker, donated $7.5 million to Hubei Charity Federation and China Charity Federation for relief efforts. A $1 million slice went toward medical supplies such as hand sanitizer and face masks. JPMorgan donated $1 million to the China Foundation for Poverty Alleviation, an organization supporting relief and recovery efforts in the region.
Cargill will donate around $288,000 to the Chinese Red Cross, and several hundred thousand face masks. Boeing donated an additional 250,000 medical-grade respiratory masks to health officials.
Burger King and McDonald’s, two fast food chains that are planning to open thousands of new restaurants in China, are donating food to hospitals treating coronavirus patients. The PepsiCo Foundation donated $725,000 to support front-line responders in Wuhan and to provide medical equipment.
U.S. manufacturer Decon7 Systems said it is increasing production of a powerful disinfectant to fill surging demand from Chinese hospitals. AbbVie, a biopharmaceutical company, is donating more than $1 million worth of an HIV drug to help combat the virus. GSK and CEPI, the Coalition for Epidemic Preparedness Innovations, announced a new collaboration to make its pandemic vaccine available to speed up the development of a coronavirus vaccine.
The trade war between Beijing and Washington resulted in a partial truce in January with the signing of a $200 billion phase one trade deal, which includes $40 billion in annual agricultural purchase targets for China over the next two years, a pledge to purchase more in U.S. manufactured goods and oil, and increased protections for U.S. intellectual property.
"The Chinese folks we deal with are grateful for this life-saving help," said Doug Barry, a spokesperson for the U.S.-China Business Council. "In the end it’s about doing the right thing — a pause in the trade war to reflect on our common humanity. Maybe something to build on once the crisis passes."