US companies that produce goods in China face coronavirus fear

US companies that produce goods in China face coronavirus fear

The production of many goods made in China has been halted due to the current outbreak of coronavirus in China. Several parts of China are in quarantine at the moment and travel restrictions are also applied. These circumstances made it hard for companies to carry on their productions. Nicholas Economides, a Professor of Economics at the NYU, said the current situation was not good.

Economides said, “There is a major disruption of the supply of these goods because right now everything is at a standstill in China. He said that they had no idea about how long the disruption would last. Apple said that it had closed all of its corporate offices and retail stores in China amid coronavirus outbreak.

The most affected products include car parts, laptops, and smartphones. There are some products that are only produced in China and nowhere else in the world. The biggest impact will be seen in those areas. The total production of the world is 80 trillion and China produces 12 trillion of those 80 trillion products. Economides said that there were substitutions present in most of the areas of production. The impact will be noticed in those areas where production is done only in China.

Phantom Fireworks is one of the companies that heavily rely on China. The company is known for supplying Independence Day fireworks. Alan Zoldan, the executive vice-president of Phantom Fireworks, said, “We have had shipping and production issues, but nothing at this level. Nothing at this level.” The current shipping operations of Phantom Fireworks have been halted. Zoldan said that it was a crucial time of the year for them but there was no supply.

Zoldan said that there would be a shortage of supply during the Independence Day celebration time. He added that if the situation would remain the same as it was now then there would be a pretty serious shortage of the products. Only a few producers of fireworks operate outside of China.

Senior editor of the Chicago Morning Star

Related Posts
After Philippines, Coronavirus kills a person in Hong Kong
In China, more than 420 people have died so far due to the coronavirus outbreak.
CDC confirms first person-to-person transmission of coronavirus in US
The first person-to-person transmission of the Novel Coronavirus (2019-nCoV) has been confirmed in the US
Man handed 15 years in prison for Fentanyl Trafficking
A suburban man has been sentenced to 15 years in prison for trafficking Fentanyl. He
Donald Trump renews threat to China
It seems that the uncertainty of a US-China will prolong as Trump says that they
US, EU health care giants seeking Chinese opportunity
It seems that slowing economic growth and trade tensions don’t bother the world’s largest medical
The former Counsellor of the Embassy of Ukraine in the US may become an Ambassador of Ukraine to China
A new Ambassador Extraordinary and Plenipotentiary of Ukraine to People’s Republic of China may become
Will U.S. renew waivers allowing non-proliferation work with Iran?
It seems that the ice between Iran and United States could break a little as,
China moves ahead of US on list of most number of rich people
Credit Suisse released the report of its annual wealth survey. The report found that China
US-China negotiations reach a mini-deal
The US and China are expected to announce a mini-deal this week that would prevent
Court sentences businessman to 1 year and 1 day in prison for stealing trade secrets
A 59-year-old employee of a McHenry County manufacturing firm stole trade secrets from his employer.