Amazon, Walmart Online Orders Likely Delayed by China Lockdowns
Orders placed with global e-commerce platforms like Amazon and Walmart may be delayed by virus lockdowns and restrictions in some of China’s key manufacturing hubs, according to an industry body.
Shenzhen, home to around half of all the online retail exporters in China, was locked down for at least a week on Sunday to try to contain a spreading Covid-19 outbreak. Its 17.5 million residents were told to work from home, with all non-essential businesses and public transport shut.
In nearby Dongguan, a key Chinese hub for the manufacture of shoes, toys and textiles, factories in areas where there are virus cases have been told to close, and schools and restaurants are effectively shuttered.
The moves are creating significant disruption to the production and delivery of goods sold on major online marketplaces, including those run by Amazon.com Inc. and U.S. retail giant Walmart Inc., said Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association.
“Shenzhen now has pressed the pause key, with operations halted for almost all sectors, and we are no exception,” said Wang, whose organization represents some 3,000 exporters in the city, China’s main tech hub. The association’s members include purveyors of some of the biggest-selling online products in the West, including smartphone accessory maker Shenzhen Tomtop Technology Co Ltd., and Sailvan Times Co Ltd., maker of lounge-wear apparel brand Ekouaer.
Most production has been suspended in Shenzhen due to the lockdown and deliveries are snarled because logistics firms and warehouses aren’t operating or are doing so at a reduced capacity, Wang said in an interview Monday.
Chinese sellers have become ubiquitous on global shopping platforms, often specializing in cheaper
Read more on tech.hindustantimes.com
