Wuhan is home to factories of companies like Nissan, Honda, and General Motors, and the coronavirus outbreak could have a major economic impact.
- Wuhan, China, is one of China's largest industrial hubs, and several Chinese and international corporations have business operations in this city.
- Automotive companies like Dongfeng Motor Group, Nissan, Honda, and General Motors have car factories in Wuhan.
- Major fast food chains like McDonald's, Pizza Hut, and KFC also have branches in Wuhan, and they are suspending business in response to the outbreak.
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The spread of the deadly coronavirus is likely to have a major economic impact as Wuhan, the center of this outbreak, is a business hub for several international corporations.
Wuhan, a city of 11 million people, is one of China's largest industrial hubs and home to its steel industry. The $9.4 billion Chinese automotive company Dongfeng Motor Corp, which is joint venture partners with Nissan and Honda, resides in this city.
Several suppliers and international business operations are based in Wuhan. For example, massive car factories for General Motors, Nissan, Honda, and other corporations are there. Wuhan is home to the business operations for international corporations like Renault SA, PSA Group's Peugeot, IBM, HSBC, Siemens, Walmart, Ericsson and more. The beverage company Anheuser-Busch InBev SA also brews beer in Wuhan.
WeWork operates co-working spaces there, and major fast food chains like McDonald's, Pizza Hut, and KFC hold operations in Wuhan. Already, McDonald's has suspended business in five cities in China, including Wuhan. Likewise, some Pizza Hut and KFC stores have been temporarily shut down in Wuhan.
The city is currently under lockdown to contain the spread of the coronavirus. Since Thursday, transit going in and out of Wuhan has been halted, coinciding with the Lunar New Year holiday that is usually the busiest time of the year. During this holiday season, billions of dollars are spent on travel, shopping, and food.
Likewise, other countries have also faced economic impact. After the second case of coronavirus was confirmed in the U.S., the Dow Jones Industrial Average plunged over 250 points on Friday.