The slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a $US50 billion decrease in exports across global value chains, according to published by on 4 March. Because China has become the central manufacturing hub of many global business operations, a slowdown in Chinese production has repercussions for any given country, depending on how reliant its industries are on Chinese suppliers. According to UNCTAD estimates, the most affected sectors include precision instruments, machinery, automotive and communication equipment. Among the most affected economies are the European Union ($15.6 billion), the United States ($5.8 billion) and Japan ($5.2 billion).
Trade and Commerce
The 2019 edition of the WTO’s World Trade Report highlights that services have become the most dynamic component of international trade and that its role will continue to expand in the coming decades. It stresses the need to enhance cooperation in the international community to support this expansion.