Closings related to the virus, which causes the disease COVID-19, have been bringing the U.S. and global economies to a grinding halt.

American companies dependent on global sourcing are facing an unprecedented type of disruption amid the pandemic. And the ones that heavily or solely rely on factories in China for parts and materials are the hardest hit.

The Chinese state required factory shutdowns across most of its provinces in February, and U.S. companies have felt the effects. The CCP virus has disrupted supply chains for nearly 75 percent of U.S. companies, according to an Institute for Supply Management survey conducted in late February and early March.

In addition, there is a shortage of air and ocean freight options to bring products to the United States, compounding the delivery delays.

The crisis prompted President Donald Trump on March 20 to invoke the Defense Production Act, which will speed up and expand the supply of products from America’s industrial base, if needed. The Korean War-era statute will force certain U.S. companies to produce goods that are in short supply, such as medical masks, ventilators, gloves, testing swabs, and other essential equipment.

“The coronavirus pandemic is going to have serious implications for how we think about globalization broadly and China specifically,” said Robert Atkinson, founder and president of the Information Technology and Innovation Foundation (ITIF), a U.S. think tank.

“I think the days when everybody just assumed that there’s just one integrated global market that we can all trust—those days are gone. And there’ll be some repercussions from it, and I think China will end up paying the price.”

ITIF has long been critical of Beijing for embarking on “innovation mercantilist” policies, which include massive government subsidies, industrial espionage, cyber theft, forced joint ventures in exchange for market access, and acquisition of foreign companies to attain sensitive technologies.

These policies spurred innovation in China, but that came at the expense of innovation in Western economies, Atkinson said.

Globalization, the most powerful economic force to have shaped the world over the past two decades, is now giving way to a new world order. Souring sentiment against globalization in the past few years, particularly in developed countries, led to a global revival of nationalism and protectionism. That marked a fundamental shift in the global trade order.

Today’s stories:

Written by Brian Cates
https://ift.tt/3afAeAG

Written by Emel Akan
https://ift.tt/2J8fnn6

– – – – – – – – –

Subscribe on YouTube:
🔵 https://www.youtube.com/c/Declassified?sub_confirmation=1

Subscribe to the paper:
🔵 https://ift.tt/36c3czR

– – – – – – – – –

Visit The Epoch:
https://ift.tt/1op8bq0

– – – – – – – – –

Follow us:

Twitter:
https://bit.ly/2EaWuP9

Facebook:
https://bit.ly/2EmibfW

– – – – – – – – –

© All Rights Reserved.