According to Reuters, Chinese government officials have ordered at least 255 Shanghai-based industrial facilities to shut down for two weeks prior to the G20 Summit this September. How will the closures of these factories impact supply chain operations?
As previously published, China will host the G20 Summit this fall in the city of Hangzhou which is close in proximity to Shanghai. The G20 Summit is an annual gathering of the world's most influential leaders to collaborate on international financial stability.
To prepare the region for the high-profile attendee list, China has announced it will order certain businesses to temporarily cease operations in an effort to improve air quality.
This is not the first time China has mandated factories to close in advance of a major event. For example, before the 2008 Olympics in Beijing, China ordered factory shutdowns in the industrial cities of Tianjin and Tangshan.
Reuters reported recently that the Shanghai Environment Protection Bureau has ordered that select businesses cease or reduce operations from August 24 to September 6.
As published in our original blog post, below are some steps importers can take to minimize supply chain disruptions:
- Place orders early to ensure cargo is shipped in advance of closings
- Ask vendors the timeframe and extent of factory closing
- Communicate changes in forecasts with your logistics partners
- Have a plan B for sourcing, if possible
Marisol International will continue to work with our agent network to understand the logistical impact of the G20 Summit. If you have any questions or concerns, please contact us.