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Red Alerts in China as Floods Maroon Equipment Needed to Fight Virus

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SHANGHAI—Large parts of China were reeling on Friday from the worst floods in decades, as disruption mounted for supply chains, including for personal protective equipment (PPE), vital in the fight against the novel coronavirus.

The central city of Wuhan and the provinces of Anhui, Jiangxi, and Zhejiang declared red alerts as heavy rain swelled rivers and lakes.

Wuhan, on the banks of the Yangtze river where the novel coronavirus emerged late last year, warned residents to take precautions as water levels fast approached their maximum guaranteed safety level.

The summer rainy season brings floods to China almost every year but the impact of the disruption they cause is being felt further afield as Chinese goods become more important in global supply chains for various items, including PPE.

Residents ride a boat past a damaged and flood-affected house near the Poyang Lake due to torrential rains in Poyang county, Shangrao city in China’s central Jiangxi province on July 15, 2020. (STR/AFP via Getty Images)
Epoch Times Photo
This aerial view shows a bridge leading to the inundated Tianxingzhou island in Wuhan, China on July 13, 2020. (STR/AFP via Getty Images)

“It’s just creating another major roadblock here in terms of PPE getting into the United States—it is the worst of times for it to happen but that’s what we’re dealing with right now,” said Michael Einhorn, president of Dealmed, a U.S. medical supply distributor, which sources disposable lab coats and other products from Wuhan and nearby regions.

“We cannot get product out for over a week, which is a very long time in our business,” he said, adding that the delays could last up to three weeks.

Xiantao, just west of Wuhan, is China’s biggest manufacturer of nonwoven fabrics used in PPE production. A third of China’s total exports of nonwoven fabric products are from the city.

With the relentless rain, more misery seems inevitable.

Epoch Times Photo
The Three Gorges Dam, a gigantic hydropower project on the Yangtze River, discharges water in Yichang, central China’s Hubei province on June 29, 2020. (STR/AFP via Getty Images)

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China Limits Apple Operations as BYD Manufacturing Moves to India and Southeast Asia Amid Trade Frictions | International Business News – The Times of India

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China is restricting the export of high-tech manufacturing equipment and personnel to India and Southeast Asia, aiming to maintain domestic production amid potential US tariffs, impacting companies like Foxconn and BYD.


China Curbs on High-Tech Manufacturing

China is intensifying restrictions on the movement of employees and specialized equipment essential for high-tech manufacturing in India and Southeast Asia. This measure aims to prevent companies from relocating production due to potential tariffs under the incoming US administration. Beijing has urged local governments to restrict technology transfers and export of manufacturing tools as part of this strategy.

Impact on Foxconn and Apple’s Strategy

Foxconn, Apple’s primary assembly partner, is facing challenges in sending staff and receiving equipment in India, which could impact production. Despite these hurdles, current manufacturing operations remain unaffected. The Chinese government insists it treats all nations equally while reinforcing its domestic production to mitigate job losses and retain foreign investments.

Broader Implications for India

Additionally, these restrictions affect electric vehicle and solar panel manufacturers in India, notably BYD and Waaree Energies. Although the measures are not explicitly targeting India, they complicate the business landscape. As foreign companies seek alternatives to China, these developments are likely to reshape manufacturing strategies amidst ongoing geopolitical tensions.

Source : China Restricts Apple, BYD Manufacturing Shifts to India & Southeast Asia Amid Trade Tensions | International Business News – The Times of India

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EFIS Maroc and China Eastern Airlines Set to Launch Service Between Morocco and China

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China Eastern Airlines is to partner with General Sales & Service Agent (GSSA), the ECS Group, on the launch of three weekly flights between Casablanca (CMN) and Shanghai (PVG) via Marseille (MRS).

China Eastern Airlines and EFIS Maroc will launch three weekly flights between Casablanca and Shanghai via Marseille starting January 19, 2025, enhancing cargo logistics for Morocco-China trade, particularly in the automotive sector.


New Flight Route Launch

China Eastern Airlines has partnered with EFIS Maroc to introduce three weekly flights between Casablanca (CMN) and Shanghai (PVG) via Marseille (MRS). This service is set to commence on January 19, 2025, operating on Tuesdays, Fridays, and Sundays, using Boeing 787-900 aircraft with a capacity of 18 tonnes for cargo.

Supporting the Automotive Industry

The service aims to enhance logistical support for the automotive sector, facilitating the secure and timely transport of high-value components between Morocco and China. This new route will not only strengthen local supply chains but also promote economic growth and trade relations between Africa and Asia.

Innovative Cargo Solutions

Jean Ceccaldi, CEO of ECS Group, emphasized that this collaboration marks a significant achievement for EFIS Maroc. Leveraging advanced digital tools like Squair for customs optimization and CargoAi for booking, EFIS Maroc will enhance operational efficiency, ensuring a superior cargo management solution tailored for China Eastern Airlines.

Source : EFIS Maroc and China Eastern Airlines to launch Morocco-China service

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China Considers Selling TikTok US Operations to Musk as a Viable Option – Bloomberg

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China is considering the sale of TikTok’s U.S. operations to Elon Musk as a potential option, according to a report by Bloomberg.


Potential Sale of TikTok to Elon Musk

Reports suggest that China is considering the sale of TikTok’s U.S. operations to Elon Musk as a viable option. This development follows ongoing scrutiny over the app’s data privacy practices and its links to the Chinese government. Officials believe that a sale could alleviate international concerns and preserve the platform’s presence in the U.S. market.

Strategic Implications

The potential transaction raises numerous strategic implications, not only for TikTok but also for Musk’s other ventures. If Musk were to acquire TikTok, it could enhance his digital footprint and provide new avenues for advertising and user engagement. Conversely, it could pose challenges in managing regulatory compliance and addressing data security issues.

Regulatory Hurdles Ahead

Despite the intriguing prospect of a sale, significant regulatory hurdles remain. Any acquisition would require approval from U.S. authorities, who continue to assess the risks associated with foreign ownership of tech companies. The outcome of these discussions could have widespread ramifications for both TikTok and the broader social media landscape.

Source : China Weighs Sale of TikTok US to Musk as a Possible Option – Bloomberg

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