Here we go. All about economic impact of virus!
Before we talk about the impact of China, we must discuss the role of China in global TRADE & INVESTMENT:
*1/5 manufactured items are exported out of China - that share higher for some electronics, textile and household goods. So China is the manufacturing center.
Exposure is through SUPPLY CHAIN (intermediate goods - as in if u don't get parts, can't make it) and also through IMPORTS of FINAL GOODS.
What has happened w/ the virus? How does that matter?
Since the infection has slowed ex Hubei, normalization BUT...
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A massive risk. And that risk is more concentrated for some & can be mitigated by deep pockets but on a macro basis, that RISK DOESN'T GO AWAY.
That's just China supply chain.
And u know that what happens in China matters for the REST OF ASIA. That's where we'll go next.
Okay, but who owns these Southeast Asian electronic & textile production firms???
"If you think trade-war made global supply chain sexy, then well the corona virus is gonna make it SEXIER 😉."