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The Coronavirus Outbreak Could Hurt Companies Depending on Chinese Exports

Professor of Financial Economics and Part-time Value Investor, Transfin.
Feb 4, 2020 9:31 AM 1 min read

The coronavirus outbreak could hurt companies depending on Chinese exports.



The coronavirus outbreak could hurt companies depending on Chinese exports.

The Clock is Ticking

The economic impacts of the coronavirus outbreak on China's economy have been drastic, with forecasts slashed and markets plummeting. But its international ramifications have been rather muted thanks to a stroke of timing: the outbreak hit just when Chinese factories and businesses were closed anyway for the week-long Lunar New Year holiday.


But now that the holiday is over and the lockdown continues, effects are beginning to be felt across borders. Western retailers, auto companies and manufacturers that depend on Chinese imports are staring at the very real possibility of running out of goods they depend on.


Wuhan, the city at the epicentre of the coronavirus outbreak, is a centre of automotive production. It has been entirely sealed off from the rest of the world, and the squeeze could hit manufacturers in a matter of weeks.


Quarantine measures have already harmed the production of TV display panels and raised prices, according to a report by research group IHS Markit. Going forward, smartphones, laptop monitors and televisions could be negatively affected too. AP


Extra Crunch

In a measure to combat the virus, China reportedly built a 1,000-bed hospital in Wuhan in just 10 days. Here's a timelapse video of the hospital's construction.


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