CHINA-ECONOMY: DESPITE RESUMING OPERATIONS PRODUCTION IN CHINESE COS. IS STALLED BECAUSE OF DISRUPTED SUPPLY CHAINS
|
Xu Kemin, Director of China's Ministry of Industry and Information Technology (MIIT) Department of Industrial Policy and Regulations (MIIT) recently warned that "Due to the poor flow of international personnel and logistics, enterprises that have returned to work and resumed production are again faced with the risk of having to reduce production or shutting down. The stability of the industrial chain and the supply chain is impacted to some extent." A few examples of the disruptions creating problems for Chinese companies as reported by the media are: (i) A shortage of Ecuadorian balsa wood is delaying the construction of wind turbines in China and delaying the installation of new capacity (SCMP); (ii) Automakers with production based in China are also feeling the pinch as key components become harder to source from abroad (Bloomberg); and (iii) excavator manufacturers who have been forced to jack up prices in response (Caixin).
|