Factories in China, struggling to reopen after the coronavirus shut down the economy, face a new threat from US anti-disease controls that might disrupt the flow of microchips and other components they need.
The shock threatens to set back the ruling Communist Party's efforts to revive the world's second-largest economy after it declared victory over the outbreak. It would add to pressures on the global business activity as Western countries close workplaces, limit travel and tell consumers to stay home.
Chinese manufacturers assemble more than 80% of smartphones for Apple, Samsung and other brands, half of the world's personal computers and a big share of home appliances and other goods. But they need US processor chips and other high-value components.
It isn't clear how US anti-coronavirus curbs might affect trade. Controls so far apply to travelers, not goods. American factories are operating, but the National Federation of Independent Business says 39% of 300 companies surveyed already were suffering supply disruptions.
"A sustained disruption of activity in the US will likely lead to disruptions to manufacturing activity in China," said Darren Tay, a country risk analyst for Fitch Solutions, in an email.
Beijing is easing controls that left city streets empty and silent and sent shock waves through the global economy. Manufacturers are rebuilding supply chains - networks of thousands of providers of auto parts, microchips, and other components.
Officials say steelmakers and other state-owned industries are almost back to normal. But conditions are more precarious for small, private companies that are China's economic engine and make clothes, toys and other consumer goods. Many are running at a fraction of normal levels or are closed due to a lack of materials and employees
The shock threatens to set back the ruling Communist Party's efforts to revive the world's second-largest economy after it declared victory over the outbreak. It would add to pressures on the global business activity as Western countries close workplaces, limit travel and tell consumers to stay home.
Chinese manufacturers assemble more than 80% of smartphones for Apple, Samsung and other brands, half of the world's personal computers and a big share of home appliances and other goods. But they need US processor chips and other high-value components.
It isn't clear how US anti-coronavirus curbs might affect trade. Controls so far apply to travelers, not goods. American factories are operating, but the National Federation of Independent Business says 39% of 300 companies surveyed already were suffering supply disruptions.
"A sustained disruption of activity in the US will likely lead to disruptions to manufacturing activity in China," said Darren Tay, a country risk analyst for Fitch Solutions, in an email.
Beijing is easing controls that left city streets empty and silent and sent shock waves through the global economy. Manufacturers are rebuilding supply chains - networks of thousands of providers of auto parts, microchips, and other components.
Officials say steelmakers and other state-owned industries are almost back to normal. But conditions are more precarious for small, private companies that are China's economic engine and make clothes, toys and other consumer goods. Many are running at a fraction of normal levels or are closed due to a lack of materials and employees
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