China’s Coronavirus Freeze Threatens the Global Economy

“The agri-food sector has been up-to-date the most exposed one,” said Rodrigo Yañez, vice minister for trade in Chile. Copper exports have already been hit by the trade war between the United States and China and the lower commodity prices that resulted.

For all its growing purchasing power, China remains a force in manufacturing, the industry that propelled it to prosperity. Mr. Smerling, who owns the travel gear company LCI Brands, has long depended on China as a supplier, even though the trade war between the United States and China made it more expensive to buy from there. His company was hit by three rounds of tariffs last year.

Now Mr. Smerling can’t even reach some of his suppliers. Information is sparse, he said, and he doesn’t trust everyone is being forthcoming.

“We don’t know what is truth, what is propaganda and what is bold face lies,” Mr. Smerling said. He believes at least one supplier is misleading him so that he will put down a deposit with the company. “Everyone,” he said, “is desperate for money.”

When he is able to gather information, the news is not good. Some workers have returned to their factories as the Chinese government tries to get the economy restarted, but they are under 14-day quarantines in their dormitories. Some factories say they will be online by March 15. For others, April looks more realistic, he said.

“All our planning has been turned upside down,” said Mr. Smerling.

Mr. Smerling said he could see worrying signs for other small businesses across the country.

The virus, he said, “is going to affect every level of American society.”

Article source: https://www.nytimes.com/2020/03/02/business/economy/china-coronavirus-economy.html