China, known as the factory to the world, plays a crucial role in the global supply chain and world economy.
Apple is one brand that could face shortages with the two major assemblers of its iPhone – Foxconn and Pegatron – based in China.
The tech giant has closed its stores and office in China as it monitors the situation.
Chinese authorities told companies to extend the Lunar New Year holidays until 10 February to contain the deadly virus from spreading further.
The concern now is of further delays as some local authorities urge factories to remain closed.The impact has already been felt from the extended shutdown in China’s manufacturing sector. Hyundai, the world’s fifth biggest carmaker, has been forced to halt production in South Korea as it had run out of parts from China.
Other car makers face similar challenges with Tesla, Volkswagen and Toyota all warning they expect disruptions.