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The outbreak of covid-19 in China hits global supply

  • Date posted : April 29, 2022
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  • Comments : 0
The outbreak of covid-19 in China hits global supply

The world has been threatened with a corona infection outbreak, and the impact of such a pandemic is severe. Due to the recent outbreak of Covid-19 in China, there is a major disruption in the supply chain across the globe. The outbreak in China recently affected supply chains and manufacturing operations around the world.


This is the largest outbreak of Covid-19 In China in two years and still is in serious condition despite having an extended lockdown.

Shanghai is one of the major cities that is facing a very serious outbreak of coronavirus. Shanghai is a trading hub and the outbreak caused disruptions in the supply chain and global growth. 



What is the impact of Covid-19 in China?


After Wuhan Outbreak, this is the largest outbreak in China that caused a disturbance in the country. 

Shanghai faced a lot of problems due to the lockdown. Shanghai is China’s biggest port but the exports but as the export was facing problems there was a piling up of container on the Shanghai port. There was a high increase in the number of cases despite lockdown and restrictions.

Wuhan is having a high number of Asymptomatic cases where people are infected even after the negative results of Covid-19.

Guangzhou is also having a rise in the number of cases and the government decided to shut down the schools and there is an order of proper testing. 


There were restrictions imposed by the government on the logistic movement even on the highways by checking the necessary record history.

There is also a disturbance in the pricing of commodities such as prices of vegetables have gone up.



What is the impact of the Covid-19 Outbreak in India?


Due to the outbreak of Coronavirus in China, there is highly disturbance in the supply chain across the globe. The condition of coronavirus in china forced the factories to shut down completely and which are expected to remain depressed for months.

Many countries are reliant on China for parts and materials. The shut down of manufacturing plants in China affected the supply chain and created a lot of hassle in the countries.


The Chinese government decided to impose a lockdown and restrictions to control the outbreak in China but that created a lot of problems in imports and export.

China also produces bridal gowns which they sold all over the world. The current shutdown of Chinese manufacturing facilities specializing in these products leads to a supply shortage for the upcoming summer wedding season.

India is a major importer of many products and relies on China for around a billion dollars worth of electronic components across sectors from China every year such as ED TV panels, speakers, cables, connectors, and more.

 India's majorly imports from China include parts for electrical instruments, automobiles, smartphones, telecom, chemicals, and fertilizers. India imported goods worth $97.5 billion from China in the calendar year 2021 with an increase of 46.1% from 2020.

But the recent outbreak of coronavirus disrupted the supply chain as the freight prices have gone up and even the shipping is difficult because of the lack of labor.

Lajpat Nagar, Asia’s largest market in central Delhi for electrical components also faced many problems as the freight charges got raised by 3 times. The prices of containers have gone up and the bulky goods such as LEDTv, panels, and more becoming costlier to the ship.

China has been maintaining a trade surplus with India for over a decade and it is no different from the other countries. A trade deficit means that the country is importing more and more from the other country, which in turn means that the foreign country is earning more and more from the country.

India also imports the semi-conductor from China which are highly important to power any electrical device. Only a few countries made this item such as Taiwan and China. But due to the shutdown of manufacturing units, there is little shortage as the previous lot was used by the country. India is facing a shortage of semi-conductors which is one of the reasons for the late delivery of cars to customers.


In some places, the manufacturing units and ports are shut down and on the other hand, ships are not available. This outbreak of covid-19 disturbed the supply chain and the countries facing the consequences are finding alternative solutions to come out from it.

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