6 ways the coronavirus crisis will change China’s relations with the world

Coronavirus: Digest of business-focussed articles from national and international media, selected by George Hamilton. Some may require a subscription to obtain the full version (paywall)

Viruses and epidemic diseases might originate in one country, but they have neither nationality nor loyalty. Instead of confining themselves permanently to one breeding ground, they travel far and wide, crossing one border after another. And globalization helps them travel further, and faster.The first casualty will be the world economy. China’s economy has taken a hit due to severe disruptions of economic activity in large parts of China and global travel restrictions. A sharp slowdown in the world’s second-largest economy, which is also a chief engine of global growth, will drag on the world economy, which is operating dangerously close to stall speed.

Second, expect a speedy overhaul of supply chains.

As the world’s largest manufacturer, China has become integral to nearly every sector of the global economy and contributes about 30% of global value added in goods production.

The disruption of production in Chinese plants will lead to cascading shortages, bringing widespread disruption to global supply chains.

Third, the outbreak may stymie China’s diplomatic engagement.
That includes coming diplomatic events and foreign visits.

Fourth, the epidemic will hamper China’s ambitious Belt and Road Initiative.

Because of travel restrictions and coronavirus-related delays, there will be a lack of manpower and supplies for Chinese-funded projects overseas.

Fifth, the epidemic raises serious questions about the Chinese government’s credibility within the global health system.

While Beijing has won international plaudits for extraordinary measures it has taken to contain the outbreak, it has clearly failed to act in accordance with the International Health Regulations: it either delayed the release of critical information or probably covered it up, thereby allowing the coronavirus to fester freely at an early stage.

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South China Morning Post 19 Feb