According to a recent UN report, the 2% contraction in China’s output due to the coronavirus outbreak has so far cost the global economy about $50 billion. The most affected sectors include precision instruments, machinery, automotive and communication equipment.
In a live class weeks ago, Professor Chen Xiangfeng from Fudan University School of Management has pointed out that if China’s output "coughs", the global supply chain can’t avoid “catching a cold”. And since China has the most complete supply chain in the manufacturing industries, it won’t be replaced during the epidemic.
Meanwhile, the outbreak will probably boost an improvement in the supply chain management of the Chinese manufacturers. Our supply chain will also be more resilient in face of future crisis if the outputs become more high value-added.
