Disruption of Supply chain through China - 2077 Jestha 04

4 years ago

Disruption of Supply chain through China - 2077 Jestha 04

Disruption of Supply chain through China

A reduction in Chinese supply of intermediate inputs has affected the productive capacity and therefore the exports of any given country depending on how reliant its industries are on Chinese suppliers.

European auto manufacturers may face the shortage of critical components for their operations, companies in Japan may find it difficult to obtain parts necessary for the assembly of digital cameras, and so on.

For many companies,the limited use of inventories brought by a lean and just-in-time manufacturing process would result in shortages that will impact their production capabilities and overall exports.

Countries exposed to the disruption of supply chain through China on precision instruments, various machinery, automotive, communication and electrical equipment along with rubber/plastics, leather products and metal will be affected.

Overall the most impacted economies will be the European Union (machinery,automotive, and chemicals), United States (machinery, automotive, and precision instruments), Japan (machinery and automotive), the Republic of Korea(machinery and communication equipment), Taiwan province of China(communication equipment and office machinery) and Vietnam (communication equipment).