Worsening pandemic in China poses additional risks to international supply
In China, the number of coronavirus cases has increased, as infections with different types of coronavirus have recently become more frequent. The situation worries market participants because of the country's leading position in global trade. Thomas O'Connor, a supply chain expert at Gartner, says China is a leading producer, and if the epidemiological situation there were to cause a noticeable drop in production or transportation problems, it would have a significant impact on the global economy. The situation in China has been deteriorating since October, but has worsened in recent weeks as new infections have been reported throughout the country. This could prompt authorities to tighten restrictive measures, especially since China is set to host the Olympic Games in February. Circumstances have already led to problems with gas supplies and chip production, as well as the closure of a number of factories.