Coronavirus to Begin Destroying Global Supply Chains Within Next 3 Weeks

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The Epoch Times:

Chinese suppliers in coronavirus zones may declare “force majeure” to legally terminate export supply chain deliveries and cause many global factories to begin running out of parts within three weeks, IHS Markit warned.

With the United Nations World Health Organization (WHO) declaring the potential pandemic spread of the 2019-nCoV form of coronavirus as a Global Health Emergency on Jan. 30, domestic companies can exercise “force majeure” (Act of God) provisions under Chinese law to escape financial liability for failing to deliver customer shipments on time. The WHO designation also eliminates delivery liability since December for failures due to China’s National State Council efforts to extend holidays, implement quarantines, and interrupting transports to slow the virus spread since late December.

Wuhan is often called the “Detroit of China.” The city produces about two million passenger vehicles a year, and its factories export hundreds of millions of parts and sub-assemblies to hundreds of huge original equipment auto and commercial vehicle assembly plants across the globe.

Read more at The Epoch Times