New coronavirus isolates China from the world and weighs on global economy
A new coronavirus epidemic is isolating China from the rest of the world. It is rare for such an integral part of the global economic system to face such sudden and indefinite segregation. The consequences are beginning to show.
The uncertainty of the virus is disrupting global trade and supply chains, driving down asset prices and forcing multinational companies to make difficult decisions with limited information. The new coronavirus has infected more than 20,000 people.
The U.S. and European and Asian governments are implementing new regulations. The U.S. prohibits entry of passengers from China and tests for U.S. citizens returning to the U.S., while major airlines have suspended flights to China, and companies have withdrawn from their presence Executives out.
"I got a call: 'We don't know what to do. Our employees are scared.' They never dealt with this situation," said Rachel Conn, Nixon Peabody LLP's San Francisco employment lawyer.
Apple Inc. (AAPL) said over the weekend that it will close all its stores and offices in China until February 9. Apple Corp. has 10,000 employees in China, and the company is still struggling with plant shutdowns, which make parts for its products sold worldwide.