China Covid situation updates - 10/01/2023

Mainland China’s reopening came sooner than expected, which will possibly lead to short-term strains on the workforce and supply chains. Furthermore, China is likely to see weaker growth momentum on the back of surging infections, a temporary labor shortage, and increased supply chain disruptions.

Amid the rapid reopening, the challenge to China’s medical system may have significantly escalated, especially for less developed inland and rural areas amid the upcoming New Year holiday. The daily new cases nationwide have now reached a peak, however, and it is expected that the number of cases per day will trend downward in mid to late January.

As a result of the rapid increase in Covid cases in late 2022, China’s factory activities were reduced at end of December, and delivery delays from factories have been more frequent than normal due to the infections of the workers.

We have seen a limited impact on operations at the Chinese ports, and all pickup and customs services are running as usual. Ligentia Asia has currently adapted to a work-from-home policy, so our teams are working either in the office or at home. There is no impact on our local operations. Supplier integration is continuing without interruption, and moreover, we have a broad base of suppliers to offer alternatives in exceptional cases.

The China team is continuing to focus on building better relationships with factories and suppliers so that we can better forecast delivery times and decrease the influence this has on supply chain management.

Our team will continue to monitor the situation closely and keep you informed of ongoing developments. Our focus is to continue to offer a high-quality service for all our customers, and we thank you for your support and understanding during this time.

For any queries regarding specific bookings, please reach out to your main point of contact at Ligentia.