23 Aug 2022 -
 General

China: Covid shutdowns and heatwave make it predictably unpredictable

Supply Chain trends

China’s evolving zero-Covid strategies are slowing down global supply chains, reports CNBC,

“At the onset of the Covid-19 pandemic, China’s strict “zero-Covid” policies managed to keep Covid-19 at bay. More than two years later, the country’s ongoing controls are weighing down its economy and stalling global supply chains.

Major trade hubs like Shanghai and Beijing, after responding to waves of omicron-driven infections, require workers to have negative Covid tests to enter public spaces. The demanding quarantine and testing rules have thwarted truckers on roads as well, driving up the amount of time it takes for goods to get to Chinese ports for export.

On top of the Covid lockdowns, the country is facing another major threat—and this one could be even worse for the economy.

China has been coping with its worst heat wave in 60 years this month, with temperatures in several provinces routinely reaching 40°C (104°F). But one key province is experiencing the worst financial repercussions from the suffocating heat.

“What supply chains thrive on is predictability,” reported CNBC. “And the only thing we can say about China at the moment is that for many businesses, they’re looking at China as being predictably unpredictable.”

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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