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How the Coronavirus Can Infect Global Supply Chains

The longer the coronavirus curtails China’s industrial output, the bigger the risk of disruption to factories elsewhere.

How the Coronavirus Can Infect Global Supply Chains
Employees work on the assembly line to make protective masks at a factory operated by Dasheng Health Products Manufacturing Co. in Shanghai. (Photographer: Qilai Shen/Bloomberg) 

(Bloomberg) --

How the Coronavirus Can Infect Global Supply Chains

China is the world’s largest exporter of intermediate manufactured products -- components destined for use in supply chains across the world. About 20% of global imports of those products came from China in 2015, according to Bloomberg Economics’ calculations based on OECD trade data. The longer the coronavirus curtails China’s industrial output, the bigger the risk of disruption to factories elsewhere. For countries in the Asian supply chain, the exposure is bigger -- about 40% of all imports of intermediate manufactured products consumed in Cambodia, Vietnam, South Korea and Japan came from China in 2015.

©2020 Bloomberg L.P.