Wuhan Wilbur Ross - WSJ Editorial

The Trump Administration declared a public health emergency Friday over the coronavirus outbreak, and stocks fell some 2% on fears of the economic fallout. So why is Commerce Secretary Wilbur Ross talking about the contagion that began in Wuhan, China, as if it’s a boon for America?

“Well, first of all, every American’s heart has to go out to the victims of the coronavirus,” the Commerce Secretary told Fox Business News on Thursday. “So, I don’t want to talk about a victory lap over a very unfortunate, very malignant disease. But the fact is, it does give businesses yet another thing to consider when they go through their review of their supply chain.” He added that the virus would “help accelerate the return of jobs” to North America.

This is apparently how you think when you believe that global trade and commerce are a zero-sum game. Mr. Ross has become so focused on treating China as an economic adversary that he sees every loss for China as a net benefit to the U.S. But as the markets are saying, a slowdown or recession in China caused by the virus and quarantine will have economic consequences around the world—including the U.S. Long before supply chains relocate out of China, more Americans will have lost their jobs if a downturn spreads to the U.S.

The outbreak isn’t that serious so far, but some economists think Chinese growth could fall by a third this year. That would reduce demand for U.S. energy and other exports, which would reduce growth and wages. America has legitimate complaints about the way China does business and trade, especially the theft of intellectual property. But American workers don’t benefit from a poorer China beset by disease. America benefits when the rest of the world prospers and can buy U.S. goods.

https://www.wsj.com/articles/wuhan-wilbur-ross-11580515204 (subscription)