Confidence in China’s economy has been shaken as the number of Coronavirus infection cases continues to surge.
At the time of writing, the number of confirmed cases globally has eclipsed 17,000. China’s stock market took a sharp hit on Monday, with the retail industry taking the brunt of the damage.
The coronavirus, which originated in Wuhan, China, has killed over 360 people. Outside of country, there have been confirmed cases in at least nine other countries including the United States. Trust in China’s authoritarian communist government in Beijing is already low internationally, exacerbating concerns over the country’s ability to contain infections and treat them effectively.
The State Department in the U.S. is telling Americans to avoid traveling to China. Major American airliners including Delta and American Airlines have suspended routes to the country. Other countries are following suit.
News of the outbreak has made international businesses very nervous. On Monday, Apple announced that it would be closing all of its 42 retail locations located in mainland China. While the company’s online store remains open to Chinese customers, investors have noted that a loss of retail sales will still represent a very significant drop.
The economic impact on China doesn’t stop there. Here’s Bloomberg News with more information.
