China flooding causes supply chain disruption: report

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Massive flooding in China is disrupting the country’s supply chain, including the production of food, cars and coal, according to a report.

Even as power and travel infrastructure were restored in the country, damage caused by several days of downpour continued Thursday to cause trouble for the production and distribution of goods across the spectrum.

“As Zhengzhou is a top national transportation hub and Henan province is a major producer of grains, raw materials and some manufactured products like iPhones, we believe the rainfall and flooding will have a material impact on business activity and inflation in the short term,” Nomura analysts wrote, according to Reuters.

Foxconn, the company that in Zhengzhou produces iPhones for Apple, said there so far has been no impact on its production facility.

Massive flooding in China is disrupting the country’s supply chain, including the production of food, cars and coal.FeatureChina

“We are closely monitoring the situation and will provide any updates as appropriate,” the company reportedly said.

But the outlet, citing an unnamed source familiar with the situation, also reported that a smaller Foxconn facility that produces desktop connectors in Zhengzhou had equipment damaged in the flooding.

SAIC Motor, China’s largest car maker, warned of derailed logistics at its Zhengzhou plant, Reuters reported.

Several days of downpour continued to cause trouble for the production and distribution of goods.cnsphoto

In addition to wreaking havoc on China’s supply chain in the short term, Reuters reported the floods could in the long-term harm farm output, since rainwater can spread disease on farms.

Meanwhile, Taiwan’s Central Weather Bureau issued a warning Thursday and said heavy rain will affect Taipei City and other northern parts of the island through Thursday night.

The storm is then expected to move on to the Chinese mainland, battering the financial hub of Shanghai and nearby provinces of Zhejiang, Fujian and Jiangsu with rainstorms and gales, the China Meteorological Administration said.

An aerial view of the flood in Lushan county in central China’s Henan province earlier this week. FeatureChina

With Post wires

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