Coronavirus Impact On Global Supply Chains

Production disruptions would largely affect household goods, hi-tech goods and textile industries where China plays a core role in the global supply chain, says a report from Euromonitor International…

- Justinas Liuima

Chinese and multinational companies are starting to feel disruption in their supply chains as the coronavirus continues to spread; the Chinese government extended the shutdown of factories and businesses, and airlines canceled air routes in and out of the country.

Production disruptions would largely affect household goods, hi-tech goods, and textile industries where China plays a core role in the global supply chain. Production disruptions in these industries would have an adverse effect on the global supply chain as companies would struggle to find alternative suppliers.

Hi-tech goods are likely to be one of the most-affected industries as China remains the world’s largest producer and exporter. Several multinational companies have already been affected. For example, Apple shortened working hours in its stores across China and issued a warning that supply chain disruption might also affect operations in other countries. China remains the largest manufacturer of iPhones, thus factory closures could hurt Apple’s plans to increase smartphone production.