IMPACT ON TRADE

DUE TO COVID-19
SOORYANARAYANAN.
19-PGDLSM-16
• Besides its worrying
effects on human life, the
novel strain of coronavirus
(COVID-19) has the
potential to significantly
slowdown not only the
Chinese economy but also
the global economy. China
has become the central INTRODUCTION
manufacturing hub of
many global business During the last two decades China has
become crucial to the global economy.
operations. Any disruption China’s rising importance in the global
of China’s output is economy is not only related to its status as a
expected to have manufacturer and exporter of consumer
products. China has become the main
repercussions elsewhere supplier of intermediate inputs for
manufacturing companies abroad. As of
The Problem

Declining Market Financial Cost

All stock exchanges COVID-19 arrived The UN's trade and
showing the ghraphs when the global development agency
down. economy was already says the slowdown in
showing signs of a the global economy
slowdown caused by the
coronavirus outbreak
is likely to cost at
least $1 trillion.

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China's Purchasing
Managers Indices

page 4
 Shanghai: Containers Shipping
Indicators

PRODUCT
LOREM IPSUM DOLOR SIT AMET,
CONSECTETUR ADIPISCING ELIT. ETIAM
ALIQUET EU MI QUIS.

page 5
 Chinese manufacturing is essential to many
IMPACT ON global value chains, especially those related to
precision instruments, machinery, automotive
GLOBAL VALUE and communication equipment. Any significant
disruption in China’s supply in these sectors is
CHAINS deemed to substantially affect producers in the
rest of the world. Indeed, many companies
around the world are fearful that the measures
put in place to contain COVID-19 (i.e.
restrictions to economic activities and movement
of people), could hinder the supply of critical
parts from Chinese producers, therefore affecting
their own output.

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THANK
YOU