China’s Covid shift fails to ease ‘deep concern’ in India about supply chain problems
- China is an important source of raw materials, components and even finished products like IT hardware and laptops for Indian manufacturers
- Indian traders have begun importing good from China weeks in advance amid lingering concern authorities will continue with snap lockdowns
Despite Beijing’s recent relaxation of coronavirus controls, Indian traders remain worried about disruptions to production in China and the dim prospects of a recovery in the world’s No 2 economy any time soon.
Indian traders have begun importing products from China weeks in advance amid lingering concern that authorities will continue with snap lockdowns to contain outbreaks, which may hit production of key inputs.
In the past week, major Chinese cities Beijing, Shanghai and Guangzhou have rolled back PCR testing requirements and reduced the scale of lockdowns after rare protests erupted against Beijing’s hardline zero-Covid policy.
Officials have said pandemic control measures will enter a new phase due to the less virulent nature of the Omicron strain, but analysts and traders do not expect an immediate economic turnaround.
There is a deep concern because China is a very important source of raw materials
