Almost a year after Italy broke with its U.S. and European partners to sign up to China’s influence-extending Belt and Road initiative, relations between Rome and Beijing risk deteriorating rather than getting closer.
Most U.S. factories in China’s manufacturing hub around Shanghai will be back at work this week, but the “severe” shortage of workers due to the coronavirus will hit production and global supply chains.
This latest disaster in China is a major blow to the international supply chain. Businesses should brace for a sharp descent into unknown territory and, most likely, a recession.
Less than a month into the health crisis that began in China, supply chain disruptions are showing up around the world, from automakers to mobile-phone producers to energy companies.
Forecasts indicate slower growth for global trade this year, but there are opportunities for shippers and providers of logistics and transportation services — especially in emerging countries such as Vietnam, India and the Philippines.
Analyst Insight: Never have tariffs held such a prominent place in the day-to-day global operations of businesses. The current U.S. administration has levied millions of dollars of tariffs on U.S. businesses, regardless of size. As a result, any company that imports or exports is experiencing increased costs to make, move or sell their products. And companies are making significant investments in their global supply chains to mitigate the collateral damage that the trade wars are wreaking.