Coronavirus in China: The death blow to global value chains

The world is already transitioning from global value chains to regional value chains for a number of reasons (rising production costs in emerging countries, consideration of climate constraints, local content requirements, the fragility of global value chains). The coronavirus crisis in China is going to exacerbate the perceived fragility of global value chains, given the halt to production and exports of some parts and components in China. Th is is going to accelerate the return to regional value chains.