The nature of production and international trade has changed in an important way during the last decades. Whereas countries (or firms) used to perform almost all tasks of the overall production process before exporting the product to other countries for consumption, advances in transport and telecommunication technology make it nowadays possible for a country to unbundle its tasks. That is, to minimise total production costs, firms perform one or few specific tasks themselves and then offshore other tasks to foreign countries for the next layer of production. Baldwin and Robert-Nicoud (2014) refer to the traditional trade pattern as 'trade in goods' and call the

Broke out at the end of 2019, the novel coronavirus pneumonia (COVID-19) has been spreading throughout the world, leading to more than 87 million confirmed infections and 1.88 million fatalities. Motivated by this, we evaluate the economic impacts of COVID-19 outbreak on both national and industrial levels by employing quarterly computable general equilibrium (CGE) model. Our results reveal that the epidemic may lower China's economic growth in 2020 by 3.5%, versus 4.4% for final consumption (relative to baseline). The service industry suffers the most from the outbreak, and the Accommodation-Food-Beverage service, Wholesale-Retail Trade, and Transport-Storage-Post are identified as the most vulnerable sectors, with the negative impact on output reaching as high as 14.6%. When moving to 2021, the hit to economy shrinks to 2% (1.2–2.7%), with industry estimated to be the most affected sector instead. This study indicates that implementing effective measures for preventing and controlling the epidemic and policies for post-disease economic recovery play critical role in curbing the potential economic damage.