China, Japan, South Korea supply chains under threat from ‘second wave’ of disruptions
People wear masks on a train on the first day of the Lunar New Year of the Rat in Hong Kong on January 25, 2020, as a preventative measure following a coronavirus outbreak which began in the Chinese city of Wuhan. (Photo by DALE DE LA REY / AFP). Sketched by the Pan Pacific Agency.
BEIJING, Feb 28, 2020, SCMP. China, Japan and South Korea are at risk of a second wave of disruptions to their supply chains due to the ongoing impact of the coronavirus epidemic, which risks already slowing global trade, analysts warned. The three Asian countries contribute around 24 per cent of the entire world economy with a combined yearly trading volume of over US$720 billion, forming one of the most integrated international economic blocs in the world, South China Morning Post reported.
The three countries, though, have been hit hard by the coronavirus outbreak with over 1,500 confirmed cases in South Korea and over 180 domestic cases in Japan in addition to over 700 cases on the Diamond Princess cruise ship.
The coronavirus has grounded flights and restricted the flow of people between the three countries, while also disrupting integrated industrial supply chains across the region, with the electronics and automotive industries the hardest hit.
“If the epidemic spreads in Japan and South Korea, it will bring a second blow to the global industrial chain and impact downstream companies in China,” said Song Xuetao, an economist at Tianfeng Securities.
Orange Wang covers the Chinese macroeconomy, and has many years of experience with China’s monetary and fiscal policy moves. He also covered global market and financial news for a long time, with a particular focus on new technologies and their influences on economic growth and society.
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