Covid in China: fears for logistic chains. Samsung stops production
The ongoing covid-19 epidemic in Xi'an, Shanxi region, China, is making industrial workers nervous because it risks having heavy repercussions on logistic chains. South Korea's Samsung Electronics announced today, December 29, that it will temporarily change the operations of its factory in Xi'an in China, where "The adjustment" means a reduction in production from the minimum possible and the activation of production alternatives; many companies, including listed companies, such as China Rong Electric, Fujita and others have also announced "flexible hiring" of production line employees. This means that either the employees are closed in the factory and do not return home, to avoid contact, or, in the same way, those who can continue to work only in telework.
But there are also other problems, and not secondary ones, in Xi'an. The lockdown is very tight and slows down, if not stopped, the circulation of goods, including essential ones, for which several Chinese social media users have published photos of empty supermarket shelves.
Furthermore, there has been an increase in the price of food, especially fresh: there is talk of cabbage that cost three Yuan before the lockdown that cost five Yuan during the lockdown. The situation seems to be a bit patchy, but there are some logistical problems.
Above all there is the basic problem: it is not certain that even the fourth total round of tests, with long queues at the diagnosis centers, will be able to identify all cases still latent and without symptoms.
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The Covid article in China: fears for logistic chains. Samsung stops production comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/covid-in-cina-timori-per-le-catene-logistiche-samsung-interrompe-le-produzioni/ on Wed, 29 Dec 2021 20:55:16 +0000.