The coronavirus itself may not trigger a wholesale reorganisation of supply chains, but it strengthens the argument for companies to reduce associated risks. One response might be to introduce more redundancy into supply chains to lessen reliance on single suppliers. Within Asia, that could benefit the likes of Vietnam, Korea and Taiwan, whose firms have demonstrated over the past couple of years that they are viable competitors to suppliers in China. Another response would be to simplify and shorten supply chains, which could harm suppliers across much of the region but potentially benefit many in China.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services