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Covid curbs in China to tighten global supply chain

Manufacturers of almost everything are warning of shipment delays as they comply with Chinese rules aimed at containing the spread of COVID-19, putting additional strain on global supply chains.

Authorities across China are attempting to contain the country’s greatest COVID-19 epidemic in two years by placing millions of people under lockdown, restricting transportation, and closing enterprises.

The important manufacturing hubs of Shenzhen, Dongguan, and Changchun, as well as Shanghai, China’s financial capital and home to the world’s busiest cargo port, have enacted some of the toughest regulations.

Due to the shutdowns, Fabien Gaussorgues, who provides contract manufacturing services from a facility in Dongguan, said that he was having difficulty obtaining parts for electric scooters, warehouse robots, and electric toys.

‘It’s not crucial yet,’ Gaussorgues added, ‘but it’s growing more tough every day. Shenzhen’s suppliers are unable to produce, hence they are unable to provide items. As a result, we won’t be able to produce next week.’

After suspending work at its Dongguan plant, Lens Technology, which supplies lenses and glass material to customers such as Apple, stated on Monday that production and delivery of some products would be impacted.

Similarly, Netac Technology, which manufactures portable hard drives and USB flash drives, warned of shipment delays after its Shenzhen facility was forced to close.

While major ports in Shenzhen and Shanghai declared that they were open for business, logistic providers said that trucks delays were occurring due to road and testing restrictions and several companies in Shenzhen had ceased taking cargo.

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