China Storm Update
I traveled back to the United States Sunday to attend certain meetings and to celebrate Spring Festival with my family, which I often do when China closes for these long holidays. Having left Beijing in the midst of the unprecedented snow storms that have swept the country, I have frankly been quite surprised by how little of what is happening in China is being reported by the news media here. The New York Times has run some informative articles on the emergency conditions in China, but the TV media has been consumed with news of the Democratic and Republican primaries, President Bush’s State of the Union message, and the current state of the U.S. economy.
I realize that I have already written a post on this topic Monday. However, given China’s importance in the global supply chain, I want to emphasize to every company around the world that is depending on goods from China that the situation in China is serious, and it is widespread. Forget about everything else. This is the story in China today. Literally, millions of people and thousands of businesses are being affected.
My latest information is as follows:
- Highways in as many as 13 or 14 provinces are closed. Supplies and products cannot be received or shipped.
- Electricity is limited, and only certain operations in many factories are running.
- Roads are not expected to be open for another week. When opened, people and coal transfer will be the first priority.
- Travelers in major transportation hubs including Shanghai are experiencing one and two-day delays in getting outbound flights.
If you are depending upon supplies from China, I suggest that you contact your Chinese suppliers to obtain the latest update, and insist upon periodic updates in the weeks ahead. Expect at least a two- to four-week interruption in supply.



