Coronavirus could push companies to stop relying on China, but it's easier said than done, experts say

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Moving supply chains out of China has been discussed for years, but removing China from the equation entirely is easier said than done.

Fashion companies are already pulling away from China because of trade wars and tariffs, and experts predict the new coronavirus will be yet another reason for companies to cut some ties with the manufacturing hub.

Apple said on Monday that the disruption in production could cause an iPhone supply shortage, and Coresight Research, a research and advisory company, warned that summer fashion collections could be affected if factories aren't fully operational by the end of March. The worst-case scenario, according to Marie Driscoll, managing director of luxury and fashion at Coresight, is total global output being reduced by up to 50 percent.

A sign urges visitors to wear face masks at the entrance to an empty shopping mall in Beijing on February 5. Disruptions in supply chains due to the new coronavirus could be yet another factor that encourages companies to diversify their supply chains out of China.Returning to business as usual won't necessarily bring a sigh of relief, though, because there could be capacity restraints in meeting demands, Maharaj said.

 

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Yeah where else can you get such cheap slaves and destroy the environment too in pursuit of profit?

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