Happi Staff03.02.20
Will coronavirus bring down China's manufacturing sector? The country has dominated global manufacturing activity for the past 30 years, yet that unthinkable idea is spelled out in a new column on Forbes.com. Contributor Kenneth Rapoza says China's markets are getting hit much harder than anyone realizes, and the impact on China's supply chain could be permanent. According to Rapoza, Chinese auto manufacturers and chemical plants have reported more closures than other sectors, shipping and logistics companies are reporting higher closures than the national average, and IT workers are still out at many firms.
With so many companies and countries relying on China for its manufacturing operations, there will be a mad-dash to find new capacity. What countries are most likely to gain from China's COVID-19 woes? India? Nope. Brazil? Forget it. The answer is Mexico, according to Rapoza. If he's right, the world will be beating a path to Mexico's door very soon.
With so many companies and countries relying on China for its manufacturing operations, there will be a mad-dash to find new capacity. What countries are most likely to gain from China's COVID-19 woes? India? Nope. Brazil? Forget it. The answer is Mexico, according to Rapoza. If he's right, the world will be beating a path to Mexico's door very soon.