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Disruptive China Pollution Inspections

: Transport

China Pollution Inspections Disrupting Supply Chains 2017-09-20

Factory operations suspended under sweeping environmental inspections are affecting supply chains in China ranging from chemicals to electronics to textiles, creating a crunch at its ports and uncertain timelines for deliveries, sources told Bloomberg BNA.

The situation could linger for months as authorities near major urban areas around Beijing, Shanghai and South China’s Pearl River Delta push to meet cleaner air quality goals laid out in a national air pollution action plan launched in late 2013, which expires at the end of the year.

“Tens of thousands” of factories have been affected in and near the major urban centres, with impacts ranging from “complete factory shutdowns [to] temporary closures” with unknown time frames for resolution, Gary Huang, who sources products in China for sellers and is head of the supply chain committee at American Chamber of Commerce in Shanghai, told Bloomberg BNA.

Inspection campaigns are permeating “the various links of the supply chain including component suppliers, forcing companies to modify their products or remove certain components from their production,” Huang said.

Read more in an article from Bloomberg BNA.


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