While the coronavirus may not cripple China’s economy, it does feel like it was temporarily placed on hold since the outbreak. This alone will certainly impact the global economy. Many are also trying to access what the impact will be on the global economy too. The travel bans due to coronavirus from countries around the globe as well as employers in an effort to protect and safeguard their employees' health and wellbeing are definitely taking a toll throughout the region and across the globe.
With the flow of new information of coronavirus that is fluid and contains new findings and data every day, corporates are facing challenges on whether to relocate their employees, to repatriate their employees from their assignment or to continue relocations and assignments when the host country is not on lock down. This so-called Black Swan that no one is prepared for has ignited the search on what would be the best practice or steps.
This article provides a good precautionary step on what you need to take into account.
Whether you are placing relocation on hold, finding a backup plan or proceeding with the relocation/assignment, the first steps would be educating the relocating employees on the coronavirus and ask whether they still would like to proceed with the relocation or not. This may not be based on the employer's decision to proceed with relocation since this will depend on each individual relocating employee's situation of departure and destination locations.
“As we found out with the US-China tariff war, supply chains can’t get reinvented overnight,” he said. “You can’t just pick up a several hundred million- or billion-dollar factory and plop it down somewhere else. These things take time to build, the real estate takes time to get, the licences take time to get. So, the longer this takes, the more impact there will be and there is already an impact today.” Amid the worries, however, some analysts say the outbreak will have only a short-term impact on Asian economies. Thai analyst Nonarit said he expected the situation to be under control in six months. “Though the virus is more contagious compared with Sars, there is a lower [fatality] risk and the Chinese government shares more information than it did during the Sars crisis.”