20 Jan 2022 -
 General

Bloomberg – ‘Mother of all supply shocks’ waits in China’s Covid crackdowns

The world economy could be headed for the “mother of all” supply chain stumbles, writes Bloomberg.

Reporting on new research by HSBC economists, Bloomberg suggest that “if the highly infectious omicron variant which is already swamping much of the global economy spreads across Asia, especially China, then disruption to manufacturing will be inevitable” and will also be hugely disruptive.

“In recent weeks scattered infections of both the delta and omicron variants have already triggered shutdowns to clothing factories and gas deliveries around one of China’s biggest seaports in Ningbo, disruptions at computer chip manufacturers in the locked-down city of Xi’an, and a second city-wide lockdown in Henan province Tuesday,” writes Bloomberg.

Henan and Guangdong, which also has an outbreak, are centres of electronics production. If cases continue rising there, it could impact the supply of electronic components, according to Bloomberg Intelligence analysts.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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