China

This report details the findings of PwC China in partnership with AmCham China and AmCham Shanghai the results of two joint surveys that study the supply chain impacts of recent events on American companies operating in China.

This white paper contains insights from recent interviews with leading organizations on how they are responding to the new coronavirus crisis.

Two recent industry surveys indicate that China and other key Pacific Rim markets remain resilient as the recent pandemic recedes.

U.S. firms in China say business is gradually returning to normal, but lower revenues and delayed payments are leading to changes in both short-term and long-term strategies.

In March, shipping volumes from China approached 94% of pre-COVID volume, a marked improvement from February. But it’s a tale of two industry segments.

Geopolitical analyst Jacob Shapiro argues that the over-reliance on China as a primary supplier will drive significant changes across global supply chains including how to secure future political risk.

Many companies, especially small and medium-sized businesses do not have well-developed alternate suppliers outside of China, and finding new suppliers, qualifying them, and scheduling production is no easy task.

The coronavirus (COVID-19) epidemic could be more damaging to the global economy than the SARS outbreak in 2003, maintains the IHS Markit February Global Economic Forecast.

Propelled by the Trump Administration Trade Wars, many companies have already left China for other Asian manufacturing locations. But - there are no guarantees that the virus won’t spread to these new locations.

While the ink may now be dry from the United States-China Phase One trade deal coming to fruition on January 15, there are more than a few things to watch out for and keep in mind going forward.

The office of the United States Trade Representative (USTR) said that the U.S. will be maintaining 25% tariffs on approximately $250 billion of Chinese imports, coupled with 7.5% tariffs on approximately $120 billion worth of Chinese imports, down from an original levy of 15%. And 15% duties that were to be effective on List 4B items, which were to originally take effect December 15, will not be assessed.

A “systemic cultural difference” in trade negotiations may be keeping global supply chain managers on edge next year, maintains one prominent political expert. “U.S.-China Relations: Reflections on a Gathering Storm,” hosted by the World Affairs Council in San Francisco, featured David M. Lampton, an authority on Sino-American relations at Stanford University.

Supply chain storms aren’t going away, and as you seek solutions to shelter your company from uncertainty, grow into new regions, or try to maintain your existing base, you need to equip your supply chain team with the right gear.

September shipments­, at 1,037,316, were off 1.7% annually, and on a year-to-date basis, shipments through September, at 9,252,633, are up 1.2% compared to the first nine months of 2018.

The continuing trade war between the United States and China is intensifying, leading to supply chains proceeding with caution.