India’s pharma, electronics, steel, and auto sectors may be affected by Lockdown in China
New Delhi: India’s trade with China may be affected by the Lockdown in China as the government has ordered some firms and organizations including Apple supplier Foxconn, automakers Toyota and Volkswagen to suspend some operations.
So far this year, China has reported more local symptomatic Covid-19 cases than it did in all of 2021. Many Chinese regions and towns, including the southern Chinese tech hub of Shenzhen, have tightened restrictions following Beijing’s ‘zero-tolerance’ goal of fast eliminating spread.
Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said its Shenzhen operations would be suspended until further notice, adding it would deploy backup plants to reduce disruption.
Other Taiwan companies which said they had suspended Shenzhen operations included chip substrate and printed circuit board maker Unimicron Technology Corp, which also supplies Apple and Intel, and flexible printed circuit board maker Sunflex Technology Co Ltd.
The restrictions also have wider potential ramifications which have come at a time when the global economy is under pressure from the ongoing Russia-Ukraine war with surging oil prices and weakening consumer demand.
(SMIT SONI)
