Ahead of China’s Party Congress on October 18th comes reporting that factories which closed prior to the annual Golden Week celebration may not reopen. The Chinese government has begun crackdowns on polluting factories throughout the country in an effort to mount a cleanup of the air and water in major metropolitan areas.
From Hong Kong, RIM logistics is monitoring the actions taken by the Chinese government and stands ready to assist our impacted clients.
We wanted to call your attention to these stories in the China Daily from April and September. China’s central government is cracking down on polluters and the local officials in charge of regulating them.
The Street writes “An unprecedented campaign against environmental pollution has led to 18,000 companies being punished across the country since last summer and more plant shutdowns. But the crackdown’s economic implications are just beginning to unfold.”
The scope of the reach is daunting. The Journal of Commerce reports: “An estimated 18,000 factories and their suppliers from North China to Zhejiang Province just south of Shanghai have been closed down so far as Beijing stepped up enforcement of regulations enacted in 2013. Once the Golden Week holidays are over inspectors will be heading south and west to conduct audits of factories in the manufacturing heartland of Chongqing and the factory clusters in Guangdong Province’s Guangzhou and the Pearl River Delta.”
The implication for importers purchasing from China runs not just to the direct factory, but also jeopardizes the supply chains of component parts which may be manufacturing a finished product.
RIM has an office in Hong Kong from which we coordinate the efforts of our clients purchasing in Asia. If your factory has been evasive or unresponsive since Golden Week or is asking for additional time to fulfill purchase orders, we are here to help. Contact us today to ask the tough questions on whether or not they are able to continue to deliver for your business.