The Impact of 'Novel Coronavirus Pneumonia' on Global Value Chain
8 Pages Posted: 21 Feb 2020
Date Written: February 18, 2020
One of the big uncertainties regarding the Corona Virus is how China’s efforts to contain it by closing factories will impact supply chains regionally and globally. This note points to China’s much larger relevance in the global value chain, especially as concerns exports of intermediate goods. When SARS hit in 2003, China manufacturing export share was only 8% and by 2018 it was 19%. By moving up the ladder, China’s has become a much more important player in exporting intermediate goods than before, which means that any disruption in China’s production capacity could affect the rest of the world more severely than in the past.
Keywords: Corona virus, global value chain
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