Chinese exporters restart travel amid ongoing supply chaos

A new wave of Covid-19 is sweeping across China following the reversal of Zero-Covid policies, threatening to bring chaos to supply chains.

The Omicron variant is now running rampant through several big cities, leading to worries about production lines closing down and truck drivers falling ill.

That’s according to a report in the Financial Times which said the boss of a printed circuit board factory in Shandong had only 20% of staff come into work on one day this month.

The newspaper added there is some evidence that disruption will be short-lived and one research analyst expects the Covid wave to peak by mid-January, with a fast resumption of activity in February.

Already, travel service data shows an eight-fold increase in booking for airline tickets for the Chinese holiday period, following the loosening of Covid restrictions on 7 December. And there is huge pent-up demand for international travel. Exporters have begun making international trips, with a 100-strong delegation of clothing manufacturers visiting Japan at the start of December.

In a report on China’s reopening, Florian Rotberg, managing director of digital signage consultancy invidis, noted that the lifting of zero-Covid policies is already having an impact.

“Board members and managing directors of Chinese suppliers in the digital signage industry have been back in Europe for the first time in three years. And ISE at the end of January could also benefit from Chinese exhibitors and experts being able to visit the world’s leading trade fair for pro AV,” he said.