Among China's overall imports, the top three commodities imported from the US are aircraft, spacecraft and related components (54.4 percent), engines (42 percent), and cotton (33.6 percent). Other imports from the US also accounted for an important proportion, such as optical imaging equipment, mechanical equipment, chemicals, aluminum and its products, agricultural products (soybeans), vehicles, pharmaceuticals, paper products and raw materials. In the short term, the temporary lockout of some US companies is expected to largely affect China's machinery manufacturing, automobile industry, and medical industry.

Germany is an important global powerhouse of auto parts. Thirty-two percent of China's imports of vehicles and accessories come from the European country. In the meanwhile, pharmaceutical products and medical devices imported from Germany accounted for 24.5 percent and 17.9 percent, respectively. The pandemic will have a certain impact on Germany's exports of automobile manufacturing, pharmaceutical, and machinery products. Related downstream companies in China may face some supply chain risks.

Let's now look at some key industries that are bearing the brunt of the pandemic.

Automobiles and machinery: The supply chain of two industries-automobiles and auto parts, machinery and components－may be stricken much more severely by the contagion. Forty percent of China's imports of automobiles and auto parts come from the US, Germany, and Italy. At the same time, 40 percent of China's imports of machinery and components come from the US, Germany, Italy, France and Britain.

As the automobile production processes of the above-mentioned three countries have been affected to a certain extent, the supply chain risks faced by Chinese companies will become a real problem. If the pandemic in Japan worsens, the supply chain risks of these two types of imports will grow. If China's domestic consumption demand declines significantly, the impact on the supply side will be eased.

Engines: China imports 75 percent of its engines from the US, Germany, Britain, France and Italy. These countries are stricken seriously by the outbreak. The temporary lockout of US automakers Ford and General Motors may affect the supply of automobile engines. In addition, Italian diesel engines, French turbines, and gas turbines all account for a relatively high proportion of China's imports. The situation may have a partial impact on China's downstream industries such as automobiles, ships and power generation.

Medicine and medical devices: Fifty-six percent of China's imported medicine and medical devices come from the US, Germany, France, and Italy. Although most European and American pharmaceutical companies are currently operating normally, there is a shortage of medical devices and medical supplies in Europe and the US. The global shortage of medicine and medical equipment may also influence China's imports.

Chemical industry: Chemicals imported from the US, Germany, Britain, France and Italy account for 36 percent of China's total chemical imports. Although the overall proportion is not particularly high, some products, like catalysts and reagents, rely much on imports. So far, the supply chain of importing chemical products has already been stricken.

Aerospace and its parts: China imports 83 percent of the aerospace products and components from the US and France. US aircraft manufacturer Boeing halted its production activities in March, while European multinational aerospace corporation Airbus partially resumed production and assembly work, following the implementation of stringent measures. It will have a negative impact on China's imports for related sectors, and may even affect the delivery of China's existing aircraft orders.