Coronavirus and Its Impact on Global Trade in 2021
The unpredicted deadly wave in China placed several barriers in global operations. It is not wrong to say that the majority of the countries are taking early precautions from controlling the virus to infect the economies.
Just like the matter has become a global health concern, the economies are looking for permanent solutions to start working like before. Not only it has become a public topic for discussion, but economists are also continuously looking at the massive fluctuations in the trade graph caused by a coronavirus.
China is not the only state suffering from the deadly coronavirus disease. The whole world is facing a public health threat, which is contagious if not taken safety measures.
The significant impact recorded in history is in global trade. Many worldwide trading companies listed on the Hong Kong b2b marketplace have witnessed a gradual decline in revenues, which is a matter of fear.
Coronavirus Disease: Trade Glitches Soaring Across the World
The healthcare experts believe that the coronavirus epidemic is likely to increase in the next few days. It is an alarming situation for almost every industry in the world. However, global trade seems to pay for it a little more risks compared to other sectors.
The majority of economies seek imports from Chinese manufacturing companies. Now, with the spread of deadly coronavirus disease in the home country, the trade operations are being halted for about an unsaid period.
As soon as the news became a leading headline everywhere, most of the countries suspended their bilateral trade relations with China. Not only this, many manufacturing factories and trade companies withdrew the operations to safeguard public health.
In this way, China is now under tremendous economic pressure. The dissolution of trade relations has caused global trade to suffer from great losses. With the authorities’ decision to shut down the main offices, we can only see that manufacturers in China are not progressing further. Their shipments have been cancelled whereas some of the countries have entirely rejected the deals as a precaution.
Not only this but transportation is also affected by coronavirus disease. Since the airlines are also not wholly fulfilling their business goals, it has already caused troubles to the manufacturing industry. These interlinked business functions are not letting global trade perform efficiently.
Industries Struggling with Hard Luck Due to Coronavirus Disease
The outbreak of public health concern is creating barriers for global manufacturing logistics as well. It is unbelievable to see that almost every supply chain and logistics company is paying for the hard luck.
Hyundai, the largest car manufacturing company in the world, has to shut down its car factories in South Korea. The management discussed the undisclosed decision – most of the automobile manufacturing components are imported from China, which is not possible to function until the supplies are restocked.
Lufthansa Airlines also seems to take precautionary measures soon after the news of coronavirus disease spread in the world. It has already cancelled connections with Beijing. In this way, it has become challenging for the exporters to deliver the manufacturing goods overseas. Not only this, the Chinese government supported the decision and urged the trading companies to withdraw from the operations until further notice.
The electronics manufacturing industry is also paying the cost for survival. Most of the factories in the world have to shut down their leading development functions because of the same reason. It is making sense that the Chinese electronics manufacturing industry is one of the largest global suppliers. However, with its industry being affected by the disease, all other linked industries are also paying the same cost.
What Can We Learn From SARS?
If we look at the past events that too broke the alliances, it was merely easy to sustain the trade relations. The domestic trade suffered badly, whereas market prices soared beyond expectations.
Global trade in the past is not different from the current situation. We can simply take notes from the previous outbreak that caused the Chinese economy to implement the right measures. The manufacturers in the global b2b marketplace are also looking forward to basic solutions that may simply support their business instead of making plans to take a break for some time.
It is for sure that today, global trade will have to suffer from a great crisis. In the last few months, trade performance has definitely declined. When SARS prevailed, China contributed to global trade by only 5%, and now it improved to 16%.
Now, we can only think of the right moves that can bring down the crisis and level up the opportunities like before. All it will take some time for sure, but just like China can make things better in the past event, the economies can make it happen today as well.
It is definitely too early to analyze the economic situation. Global trade is, for sure, suffering a lot due to increasing public health concern. However, we can only see that the productions and shipments are being halted as a precautionary measure. This can soon resume only if the government takes specific actions in terms of health safety.