Forwarded from 📡Guardians of Hong Kong
#ChinaEconomy #Crisis
"It’s time for global businesses to admit it: China isn’t a good investment"
The Washington Post, Feb 14, 2020
//The coronavirus outbreak is... an economic as well as a humanitarian crisis.
...Companies have to wonder whether China is peculiarly at risk for these mysterious epidemics. The SARS virus exploded out of China in 2003, causing thousands of infections with a 10 percent mortality rate...But no other global power has had two mysterious, rapidly spreading viruses arise in this time period. Is it worth the risk that it could happen again?
Combined, these factors will increasingly make it cost-effective to bring manufacturing back to the developed world or countries in those nations’ sphere of influence.
None of this will happen overnight, but any rational company has to see the writing on the wall. Slow but steady disengagement with China will cost money in the short term but will likely pay off big in the long term.//
Image: Bloomberg
"It’s time for global businesses to admit it: China isn’t a good investment"
The Washington Post, Feb 14, 2020
//The coronavirus outbreak is... an economic as well as a humanitarian crisis.
...Companies have to wonder whether China is peculiarly at risk for these mysterious epidemics. The SARS virus exploded out of China in 2003, causing thousands of infections with a 10 percent mortality rate...But no other global power has had two mysterious, rapidly spreading viruses arise in this time period. Is it worth the risk that it could happen again?
Combined, these factors will increasingly make it cost-effective to bring manufacturing back to the developed world or countries in those nations’ sphere of influence.
None of this will happen overnight, but any rational company has to see the writing on the wall. Slow but steady disengagement with China will cost money in the short term but will likely pay off big in the long term.//
Image: Bloomberg