U.S. businesses in China surveyed by AmCham and PwC said greatest challenges in supply chain are logistics, constraints in suppliers and insufficient labor, but operations could return to normal within six months

Summary:

AmCham China, AmCham Shanghai and PwC China conducted survey on March 2020 to study impact of COVID-19 to supply chains of U.S. businesses in China. Some findings include:

• Main Challenges to Supply Chain – Four in ten said their greatest challenge is logistics, followed by constraints in suppliers (28%) and insufficient labor (24%)
• Operational Constraints – Half (48%) were running below normal capacity, however almost all (96%) thought supply chain operations could return to normal within six months
• Reduced Demand – Majority (68%) saw lower than normal demand for products, with three in ten saying it is significantly lower
• International Trade Impact – More (36-44%) said COVID-19 epidemic had limited impact to imports and exports, compared to 8-16% who saw strong impact
• Most Helpful Policy – 56% of respondents indicated accelerating return to work approvals as most helpful action of Chinese government
• No Change in Location – Over 70% said their companies have no plans to move production or supply chain operations and sourcing to other locations, while more plan to shift sourcing than production (24% vs 12%) outside of China
• U.S.-China Decoupling – 44% of respondents think it is impossible for U.S. and China’s economies to decouple, while 20% expect COVID-19 to accelerate this possibility

For more on report, please visit https://www.amchamchina.org/uploads/media/default/0001/12/6c49fa07fc17aaad5eae5d40b592b0fbb185ea1f.pdf

For more information, visit the AmCham China website.

Original publication date: April 17, 2020

Date last updated: May 5, 2020