China has been an indispensable part of the global business for the past two decades; it has grown into the world’s factory. From the mass production of iPhones to automobiles parts, it has transformed as the homeland of tech manufacturing. China’s economy holds roughly 16 per cent of world GDP.
But now the recent outbreak of the Coronavirus in China has started to affect the global technology industry, with reports of a drop in supply chains, shipments and closed stores, several of the world’s biggest companies are cautioning investors of a future hit to earnings.
The outbreak of the pneumonia-like disease, now officially called COVID-19, has generated concerns around the world since December 2019, the disease has also been declared as a public health emergency internationally by the WHO. The UN health body has also cited worries about the virus’ spread, particularly to countries with weaker health systems. As of February 17, 2020, the highly contagious virus has killed over 1,770 people and infected 71, 000 globally.
The virus outbreak is centered in China and because of its rapid spread, the economic repercussions have already been seen with shutting down of factories, closed stores, and offices, restricted traveling, and canceling of big events.
Some experts have warned that the outbreak in the world’s most populous country and the second biggest economic superpower can threaten global growth this year. But clearly the country which is the most affected by the virus after China is the US.
Just how China is the hub for manufacturing, the US is the homeland of the tech industry, which has felt the after-effects particularly due to its dependence on China both as a major market for its goods and as a critical supplier of components for a number of consumer products.
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