What would YOU do if lockdowns in China over Chinese New Year threatened your supply chain..?
As cases climb in Northern China there’s a very real threat that tightening restrictions could affect supply chains in China.
In this episode, Adrian and Renaud discuss the situation on the ground in China and Hong Kong as of January 28th, with Chinese New Year fast approaching on February 12th.
CNY is a difficult time for importers as it is, as manufacturers tend to be closed for weeks and the ramp-up of production following the holidays takes time. Add travel restrictions and quarantines due to coronavirus, and it’s possible that some importers could be waiting for quite some time for their post-CNY orders if things get worse.
So, what do we know about the situation in China right now, the government’s plans, and how factories have been affected so far? Listen below!
Just hit the play button to start listening..!
Listen to the episode right here 👇👇👇
Here’s a summary of key sections of this episode:
✅ The situation as it stands right now. Why tens of millions of travellers cause a headache for the government.
✅ Large CNY gatherings and why they increase risks.
✅ Are restrictions likely to be strictest in the North and North-East? Currently, there is a low, medium, and high-risk area system in place and restrictions vary between them.
✅ Tighter travel restrictions have caused perverse effects on the manufacturing industry in China earlier than usual. Some staff have travelled home very early to get ahead of possible restrictions. If they’re key staff this leaves manufacturers with less capacity.
✅ Why restrictions won’t help a lot of Chinese exporters who are suffering from a poor exchange rate and logistics issues.
✅ If workers stay in the cities where they work, could this mean that factories get back to work sooner than usual after the holiday?
✅ What’s the worst-case scenario for importers with a Chinese supply chain? Could we see a repeat of 2020’s lockdown?
✅ A list of some of the measures in place from our HR manager. Including tests before travel, possible quarantine upon arrival, etc.
✅ Key points for importers to focus on during this time. Keep an eye on the news, communicate with your suppliers, and be aware of your key sub-suppliers, too. If any of them get moved into a higher-risk area, you can try to take action as quickly as possible to mitigate risks to your supply.
✅ How about the situation in Hong Kong? They have increased quarantine for new arrivals from 2-3 weeks in a hotel and how they are battling some localized outbreaks block-by-block.
Related content to read next…
- 6 risks importers from China face in January 2021
- China’s Covid-19 outbreaks force caution as Lunar New Year travel rush begins
- China orders millions in Beijing to get tested after three new cases
Are you seeing any effects from the coronavirus restrictions in China already? How concerned are you about your suppliers being hit by lockdowns or other restrictions?
Let us know your experiences by leaving a comment, please.
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