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BEIJING, March 20, 2022 /PRNewswire/ — Concerns by some US media outlets over potential supply chain hiccups as a round of Omicron cases hit some of China’s major manufacturing and commercial cities are a testament to China’s prominence in the global supply chain, analysts and industry insiders said on Friday. While some sectors are inevitably affected during the current fight to contain the virus, the overall health of the supply chain in China remains sound, thanks to the effective dynamic zero-COVID strategy, and as cities swiftly resume production, the impact of this round of epidemic flare-ups will be very limited, they said.
As the “worst outbreaks” in two years caused by the highly contagious Omicron variant hit many of China’s manufacturing hubs, US media outlets have rushed to flag supply chain concerns and delays at ports, citing the suspensions of plants run by big companies including Toyota, Volkswagen, Tesla and Apple OEM Foxconn.
However, economists said that what people are seeing this week in China is not comparable to the US, where serious supply chain issues from ports to warehouses are playing a part to fuel record inflation.
The impact of this round of outbreak and epidemic control measures has on China’s supply chain is temporary and controllable, and the disruption done to the supply chain is likely to be offset as companies ramp up production, analysts pointed out.
Bai Ming, deputy director of the Chinese Ministry of Commerce’s International Market Research Institute, told the Global Times on Friday that as Chinese localities gain more experience in fighting the virus, they tend to achieve swifter results and that recovery also comes sooner.
Such a playbook was unfamiliar to foreigners. They could be surprised by the sudden suspension of plants this week in both the Yangtze River Delta and the Pearl River Delta, which are the center of the global supply chain from electronics products to consumer goods, Bai said .
The latest epidemic forced Shanghai and Shenzhenthe No. 1 and No. 3 Chinese cities in terms of GDP output, to introduce strict measures including remote office work and plant suspensions, while large-scale coronavirus screening tests were carried out.
Nonetheless, Chinese companies now have rich experiences to cope with the impact of strict anti-epidemic measures, and benefit from the …
Full story available on Benzinga.com
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