Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul class="summary-list"><li>The <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> pandemic has been an important "learning experience" for manufacturers who are struggling with unprecedented demand and supply chain disruptions, an expert told Business Insider.</li><li>Many companies are now learning the hard way about "supply chain diversification," the concept of using a variety of different suppliers to reduce the risk of having an entire supply chain cut off all at once.</li><li>It's a predicament many <a href="https://www.businessinsider.com/maine-factory-pivots-to-ppe-but-marketplace-is-a-mess-2020-4">American factories have faced firsthand</a> as they attempted to pivot to producing medical supplies but immediately ran into challenges sourcing raw materials.</li><li>"We're only going to come out better on the other side of this, once this is all said and done," said Seckin Ozkul, a supply chain management expert at the University of South Florida.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Americans adjusting to the coronavirus pandemic and the pivot to stay-home life have struggled for months with major shortages of key products, including everything from vital <a href="https://www.businessinsider.com/why-factories-cant-keep-up-demand-for-face-masks-coronavirus-2020-4">medical equipment</a> and <a href="https://www.businessinsider.com/grocery-stores-kroger-giant-eagle-limit-meat-purchases-some-locations-2020-5">grocery items</a>, to <a href="https://www.businessinsider.com/when-lysol-clorox-wipes-back-in-stock-available-by-summer-2020-4">cleaning supplies</a> and <a href="https://www.businessinsider.com/nintendo-switch-production-increasing-animal-crossing-2020-4">Nintendo Switches</a>.Most of those shortages stem from an unprecedented surge in demand, which caught companies off guard. In many cases, manufacturers also had trouble sourcing raw materials from countries like China, which closed factories for months to stem the coronavirus outbreak.One expert said the disruption has been "a learning experience," and that many US manufacturers are learning the hard way about the value of supply chain diversification — the concept of broadening a company's range of suppliers to reduce the impact of a disruption.Because nearly every industry in the country has been touched in some way by the coronavirus, the crisis doubles as a perfect opportunity for manufacturers to think creatively about how and where to create their products and source their materials, Seckin Ozkul, a supply chain management expert at the University of South Florida, told Business Insider.That will only strengthen the <keyword id="113056" type="PERSON" weightage="60" keywordseo="US-manufacturing">US manufacturing</keyword> sector in the long run, he said, as companies might open up new factories in the US or in neighboring countries, or push themselves to rely less on China and work with different countries.<div type="image" title="N95 masks are prepared to be shipped at the Afya Warehouse, a non-profit medical supply recovery organization, during the outbreak of coronavirus disease (COVID-19) in Yonkers, New York, U.S. March 25, 2020. REUTERS/Lila Engelbrecht" height="526" width="800" msid="75585996" hostid="261"></div>"What I can tell you is I am sure every company right now is looking at their supply chain and thinking, 'How can I diversify it further?'" Ozkul said. "If you were only doing business with China, and China closed for three months, you were in deep, deep, deep problems."That's the predicament many medical supply manufacturers have found themselves in, amid sky-high demand for items like <keyword id="50982" type="PERSON" weightage="60" keywordseo="N95-masks">N95 masks</keyword> and other personal protective equipment that hospitals have had to ration for months.Though a number of American companies have sought to help by <a href="https://www.businessinsider.com/how-us-factories-can-pivot-to-make-ppe-2020-4">pivoting to producing PPE</a> like face shields, <a href="https://www.businessinsider.com/maine-factory-pivots-to-ppe-but-marketplace-is-a-mess-2020-4">some factory owners</a> told Business Insider they were shocked that the US had no coherent, centralized plan for producing its own face masks, medical devices, and pharmaceuticals after decades of relying on China to create those products.That will likely change going forward, Ozkul said, as companies that have traditionally relied on Chinese factories will likely want to prevent a similar crisis."Folks are now going to start thinking, 'Can I open up a smaller facility? Or a facility in the United States? Can I open up a facility closer to the United States? Maybe Mexico? Canada?" he said.<h2>Companies were prepared for local or national disruptions — not global ones</h2><div type="image" title="Target toilet paper" height="2250" width="3000" msid="75585999" hostid="261"></div>Ozkul said experts frequently model potential supply chain disruptions in an effort to better understand how to prevent and solve them, but the problem is that those models typically account for local or national disasters like hurricanes — not pandemics that cripple the entire globe."Now, we want to look at this — it happened, and the next time it happens, we can be better prepared and we can actually take the necessary precautions so we don't see the impacts as much as we saw it this time," he said. "We're only going to come out better on the other side of this, once this is all said and done."That lesson goes for consumers as well as manufacturers and suppliers, Ozkul said, adding that it's important Americans recognize how their buying habits can affect others.For instance, in early March, Americans flocked to stores to buy up massive quantities of <keyword id="15727" type="PERSON" weightage="60" keywordseo="Toilet-paper">toilet paper</keyword> and other household items, leaving store shelves empty for months while companies struggled to ramp up production. That sort of behavior needs to change, and people need get used to buying no more than the amount they normally would buy, Ozkul said."There was no toilet paper, there was no Lysol, there was no Clorox. But then we also learn, 'Oh yeah, maybe I shouldn't buy 10 gallons of this thing, because it looks like there are supplies still coming in,'" he said. "Use as you were before, and therefore buy as you were before — otherwise you are buying the supply of your neighbor."Read the original article on <a href="https://www.businessinsider.com/coronavirus-supply-chain-diversification-disruption-could-be-good-2020-5">Business Insider</a>

The disrupted supply chains that left store shelves devoid of toilet paper and cleaning supplies could end up being a good lesson for American companies

China's Covid-related lockdowns in 2022 crippled the flow of important pharmaceutical products around the world. The events are prompting a reconsideration of the structure of international supply networks, along with geopolitical competitiveness and macroeconomic pressures. <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> may become a destination in the US's new "friend-shoring" policy for the pharmaceutical industry, reported <keyword id="7667981" type="General" weightage="80" keywordseo="hinrich-foundation" source="Orion">Hinrich Foundation</keyword>. The term friend-shoring is used for the act of moving supply networks to nations with little chance of political unrest disrupting them. Notably, the Hinrich Foundation is an organisation that works to advance mutually beneficial and sustainable global trade through research and education programs that build understanding and leadership in global trade. National leaders no longer seem to believe in the logic of free trade as the world economy recovers from the Covid-19 pandemic, especially when it causes the concentration of essential supply chains of crucial businesses in certain geopolitically hazardous geographies. Supporting the growth of supply chains in friendly countries is known as "friend-shoring," and among US authorities it has emerged as a strategic shift away from the costs and alleged drawbacks of both uncontrolled foreign investment and the "onshoring" industries, read a paper jointly authored by <keyword id="16717305" type="General" weightage="80" keywordseo="akhil-ramesh" source="Orion">Akhil Ramesh</keyword> and <keyword id="14532427" type="General" weightage="80" keywordseo="rob-york" source="Orion">Rob York</keyword> for Hinrich Foundation. Given the recent economic liberalisation measures in India, the expanding alliance between New Delhi and Washington, and India's position as the "pharmacy of the world," the pharmaceuticals sector, whose significance was increased by the pandemic, is a good possibility. However, the indigenous industry in India confronts difficulties because of inadequate regulatory monitoring, reliance on China for component supplies, and problems emerging from environmental damage related to their manufacturing. China has provided considerable economic support to the pharmaceutical industry over the past two decades, while the US has brought a knife to a gunfight by not applying industrial policy planning to its pharmaceutical and API businesses to a comparable amount. Since then, the US has intensified its shift towards such industrial policies. America continues to have a strategic edge as the biggest buyer of medications in the world. To change the supply chain, the US might use its market for pharmaceutical consumption as a weapon. The US might increase its edge in supply chain diversification if it can convince Japan and France to join the friend-shoring movement, the paper in Hinrich Foundation further read. The <keyword id="14429529" type="General" weightage="50" keywordseo="mineral-security-partnership" source="Orion">Mineral Security Partnership</keyword> (<keyword id="133827" type="General" weightage="50" keywordseo="msp" source="Orion">MSP</keyword>) and the CHIP4Alliance for semiconductors are two comparable partnerships that the US has previously started. In order to achieve this, the US could first use the "panopticon effect"41 to collect crucial strategic information from the Indian government and pharmaceutical sector. Second, it might promote the security establishment's participation. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/for-many-years-after-independence-there-was-no-long-term-vision-in-health-sector-pm/articleshow/98444722.cms">For many years after Independence, there was no long term vision in health sector: PM</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/will-reliance-capital-lenders-get-their-dues-fast-or-will-there-be-legal-delays/articleshow/98445213.cms">Will Reliance Capital lenders get their dues fast or will there be legal delays</a>

India emerges as US's new destination for "friend-shoring" pharmaceutical supply chains

<ul class="summary-list"><li><keyword id="11892748" type="UNKNOWN" weightage="60" keywordseo="china" source="Orion">China</keyword>'s commerce ministry told chambers of commerce that China would help ease <keyword id="11894138" type="UNKNOWN" weightage="60" keywordseo="supply-chain" source="Orion">supply chain</keyword> snarls, <a href="https://www.bloomberg.com/news/articles/2022-04-19/china-vows-to-ease-supply-chain-woes-in-foreign-chamber-meeting?sref=lAVQtUwz">Bloomberg reported.</a></li><li>Representatives of the chambers met the commerce minister on Monday to discuss the impacts of the <keyword id="91743" type="UNKNOWN" weightage="60" keywordseo="lockdown" source="Orion">lockdown</keyword>.</li></ul>China's commerce ministry told representatives of foreign business groups on Monday that Beijing will help to resolve supply chain issues stemming from the country's strict lockdowns, <a href="https://www.bloomberg.com/news/articles/2022-04-19/china-vows-to-ease-supply-chain-woes-in-foreign-chamber-meeting?sref=lAVQtUwz">Bloomberg reported. </a>Members of foreign chambers of commerce — including from the European, Japanese, South Korean, UK, and US chambers — met with commerce minister, Wang Wentao, to review the impact of China's strict lockdown measures, the outlet reported on Tuesday, citing attendees of the meeting. China has adopted a zero-Covid approach throughout the pandemic, introducing strict lockdown measures to stamp out the virus in areas when cases have emerged. Some cities have recently been battling the highest number of cases seen since the start of the pandemic.Outbreaks of the <keyword id="12616996" type="UNKNOWN" weightage="60" keywordseo="omicron" source="Orion">Omicron</keyword> variant triggered a fresh set of <a href="https://www.businessinsider.com/shanghai-covid-lockdown-bulk-buy-censorship-china-2022-4">restrictions</a> in the commercial hub of <keyword id="12087066" type="UNKNOWN" weightage="60" keywordseo="shanghai" source="Orion">Shanghai</keyword>, resulting in the closure of <a href="https://www.businessinsider.com/teslas-crucial-shanghai-gigafactory-shut-due-covid-restrictions-2022-3">some factories</a> and delayed <keyword id="11894932" type="UNKNOWN" weightage="60" keywordseo="transport" source="Orion">transport</keyword> of goods to <keyword id="11921984" type="UNKNOWN" weightage="60" keywordseo="ports" source="Orion">ports</keyword>, threatening further disruption to the global supply chain.During Monday's meeting, Chinese officials said that the government would work with foreign businesses to help iron out supply chain problems, the newswire reported, citing the European Union Chamber of Commerce's president, Joerg Wuttke, and they confirmed that China would maintain its zero-Covid approach. In a statement sent to Insider on Wednesday, Jens Hildebrandt, executive director of the German Chamber of Commerce in North China, said: "According to our assessment, it will take months to fix the disruptions in the supply chains. Companies are now looking more at (risk) diversification in China, so that they have different warehouses or production sites and can act accordingly. This would increase costs for companies and in the end for consumers.""The current policy with lockdowns leading to production stops, logistic and supply chain disruptions and restrictions on the movement of people do not only pose a short-term concern but will leave their marks on the long run," Hildebrandt added.The Ministry of Commerce in China could not be reached for comment. Insider has reached out to the European Chamber of Commerce for comment.A number of manufacturers, including Tesla, are preparing to reopen their factories in Shanghai, <a href="https://www.reuters.com/world/asia-pacific/tesla-others-prepare-shanghai-factory-restarts-city-aims-ease-lockdown-2022-04-18/">Reuters reported</a> on Monday, citing a "white list" of over 600 firms given priority to resume operations and restart the local economy. Sources told Reuters that Tesla will still operate a "closed loop" policy in Shanghai.Tesla did not respond to Insider's request for comment.

China tells foreign business groups it will help fix supply chain problems as strict lockdown measures hit factories and transport, a report says

<ul class="summary-list"><li>The climate crisis is throwing a wrench into already messy supply chains.</li><li>Supply chains of late have been disrupted by a pandemic, geopolitical tensions, and rising costs.</li></ul>The world's supply chains are in even bigger trouble than you think.While <a href="https://www.businessinsider.com/china-trade-war-covid-companies-moving-supply-chains-2022-12" target="_blank" rel="noopener noreferrer">the COVID-19 pandemic</a> and <a href="https://www.scmp.com/economy/china-economy/article/3146489/us-china-trade-war-timeline-key-dates-and-events-july-2018" target="_blank" rel="noopener noreferrer">China's tensions with Washington</a> have been disrupting supply in the past few years, yet another thing is playing out that might even keep you from getting your holiday presents on time months from now: the climate crisis.The situation is serious this summer because of a <a href="https://www.reuters.com/business/environment/historic-drought-hot-seas-slow-panama-canal-shipping-2023-08-21/" target="_blank" rel="noopener noreferrer">historic drought</a> affecting rainfall that feeds into the Panama Canal. This has lowered the canal's water levels and limited the number and the weight of ships that can float on it.It's causing a buildup in the number of ships waiting to cross the waterway.Droughts aren't a new phenomenon at the Panama Canal — climate change has been associated with <a href="https://www.wsj.com/articles/panama-canal-tackles-climate-change-puzzle-too-little-rainwater-or-too-much-11624872601" target="_blank" rel="noopener">unpredictable weather</a> for years. But the <a href="https://www.businessinsider.com/panama-canal-drought-travel-ships-income-falling-el-nino-2023-8">dry weather</a> is worse this summer, in part because of the onset of the <a href="https://www.reuters.com/business/environment/historic-drought-hot-seas-slow-panama-canal-shipping-2023-08-21/" target="_blank" rel="noopener">El Niño weather phenomenon,</a> which takes place every few years.This has added a new level of unpredictability that one supply-chain expert says might require the industry to "fundamentally transform."Nari Viswanathan, the senior director of the supply chain at the budget-management company Coupa, told Insider that the global supply chain had been designed to respond relatively quickly to market conditions like shifting demand.The climate crisis presents a new kind of unpredictability, one that Viswanathan said could require predictive weather analysis using algorithms and data.<h2>One shipper paid over $2 million to cross the Panama Canal — and this could hit consumer prices</h2>Project44, a supply-chain platform, told Insider earlier this month that the drought conditions had caused shipping capacity through the Panama Canal to drop by over 20% in the prior two weeks.The decline is concerning, as it is peak shipping season when retailers ramp up shipping in anticipation of increased demand ahead of holiday shopping. About <a href="https://www.globaltrademag.com/potential-shortages-loom-as-panama-canal-restrictions-impact-holiday-stocks/" target="_blank" rel="noopener">40% of US container traffic</a> passes through the waterway."If this downward trend continues, it could prompt shippers to reevaluate their choice of ports for bringing in inventory to ensure holiday season shelves remain adequately stocked," Project44 added.The situation has the shipping giant Maersk worried."The low water levels at the Panama Canal are a clear example of the effects of climate change in rainfall and weather patterns across the globe, which causes a ripple effect through the supply chain," a company representative said.The congestion of massive container ships and energy tankers in the Panama Canal has gotten so bad that <a href="https://www.businessinsider.com/panama-canal-traffic-auction-shippers-paying-millions-for-crossing-2023-9">one shipper recently paid over $2 million just to beat the queue</a> to cross the waterway.Such surcharges add to transportation costs and could feed into high prices for the end consumer."Panama Canal surcharges and vessel restrictions will likely mean higher <a href="https://www.cnbc.com/2023/06/24/us-trade-dominates-panama-canal-traffic-a-drought-is-threatening-it.html">clothing and shoe prices for US consumers</a> this holiday season," Stephen Lamar, the president and CEO of the American Apparel &amp; Footwear Association, told CNBC in June.The weather forecast isn't encouraging for ships crossing the Panama Canal in the short and long term, Jon Davis, the chief meteorologist at Everstream Analytics, told Insider.That's because the El Niño weather event is likely to strengthen, which would be associated with below-normal rainfall from late this year through early 2024, he said.<h2>Supply chains were already in chaos from COVID-19, geopolitics, and rising costs in China</h2>To be sure, the vessel congestion at the Panama Canal is troubling because it adds to the existing stress on the world's supply chains.The COVID-19 pandemic and China's strict on-off lockdowns, in particular, underscored the risks of depending so heavily on the East Asian country, which has been the world's factory floor for the past four decades.One example was the tech giant <a href="https://www.businessinsider.com/apple-accelerates-production-china-protests-2022-12">Apple, which was hit by supply-chain disruptions</a> from China's COVID-19 containment policies.The pandemic accelerated a global supply-chain diversification away from China that kicked off in about 2018 after President Donald Trump launched a <a href="https://www.scmp.com/economy/china-economy/article/3146489/us-china-trade-war-timeline-key-dates-and-events-july-2018" target="_blank" rel="nofollow noopener">trade war against China</a>.<a href="https://www.cfr.org/timeline/us-china-relations" target="_blank" rel="noopener">Washington-Beijing tensions</a> are still high under the Biden administration, particularly in the area of <a href="https://www.reuters.com/technology/us-investors-flag-retaliation-risks-after-bidens-china-tech-curbs-2023-08-11/" target="_blank" rel="noopener">high-tech chips</a>, prompting investors across the board to reconsider their business risks.Even before geopolitics started playing an outsize role in the shifting of supply chains<a href="https://www.businessinsider.com/gdp-trump-tariff-trade-war-us-china-2018-10">,</a> it was costs that were already pushing some companies out of China.<a href="https://iems.ust.hk/publications/thought-leadership-briefs/can-chinese-manufacturing-firms-cope-with-rising-labor-costs-albert-park" target="_blank" rel="noopener">Wages and operating costs</a> have been rising over four decades amid China's turbocharged growth, so alternative aspiring low-cost factory hubs — such as <a href="https://www.businessinsider.com/china-trade-war-covid-companies-moving-supply-chains-2022-12">India and Vietnam</a> — have been pumping in billions of dollars to develop their own manufacturing ecosystems.

Add the climate crisis to the long list of things messing up supply chains this summer

<ul class="summary-list"><li>Dell is planning to halt the use of Chinese semiconductor chips by 2024, per Nikkei.</li><li>The move also applies to chips made in the China-based factories of non-Chinese companies.</li></ul>American tech giant Dell is planning to halt the use of Chinese semiconductor chips as soon as next year, and will slash the amount of other made-in-China parts in its products, <a href="https://asia.nikkei.com/Spotlight/Supply-Chain/Dell-looks-to-phase-out-made-in-China-chips-by-2024" target="_blank" rel="noopener">Nikkei</a> reported Thursday, citing three sources with direct knowledge of the matter.The move underscores a <a href="https://www.businessinsider.com/china-trade-war-covid-companies-moving-supply-chains-2022-12#china-has-been-the-factory-of-the-world-for-the-past-four-decades-the-pandemic-triggered-a-reckoning-of-this-status-1">shifting of supply chains out of China</a> as companies seek to end their reliance on the manufacturing giant as geopolitical relations between <a href="https://www.businessinsider.com/us-china-economy-tech-military-breaking-up-how-bad-2020-10">Washington and Beijing</a> sour, and as factory operations in China continue to be hit by the country's <a href="https://www.ft.com/content/598c81b7-bbc7-40f2-ba04-eed0dddfb989" target="_blank" rel="noopener">COVID-19 policies</a>.It's not just made-in-China chips made by Chinese companies. Dell — the world's third-largest computer maker after Lenovo and HP — has also told suppliers that it plans to cut its use of made-in-China chips that are produced by non-Chinese firms, according to Nikkei.Other than chips, Dell has also asked suppliers of other electronic parts — such as modules and circuit boards — to ramp up production capacity in countries outside China, per Nikkei."We continuously explore supply chain diversification across the globe that makes sense for our customers and our business," Dell told the Nikkei. Dell did not immediately respond to Insider's request for comment sent outside regular business hours.Dell's supply chain strategy reflects growing concerns among companies as the the <a href="https://txtify.it/https://www.reuters.com/technology/us-aims-hobble-chinas-chip-industry-with-sweeping-new-export-rules-2022-10-07/" rel=" nofollow">Biden administration</a> cracks down on China's strategic chip sector — which Beijing is counting on, to <a href="https://www.businessinsider.com/china-xi-jiinping-future-tech-global-economy-semiconductors-military-failing-2022-9">dominate the world's tech industry</a>.However, <a href="https://markets.businessinsider.com/news/stocks/stock-market-analysis-chinese-semiconductor-chip-stocks-joe-biden-exports-2022-10">in October</a> the US imposed export controls on shipping equipment to Chinese-owned factories making advanced logic chips. In December, the <a href="https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3195-bis-press-release-clean-2022-12-14/file" target="_blank" rel="noopener">US Commerce Department</a> added Chinese memory chipmaker YMTC and 21 companies in China's artificial intelligence chip sector to a trade blacklist.To navigate Washington-China tensions, companies from Apple to Nike have been making contingency plans to shift production out of China to <a href="https://www.businessinsider.com/china-trade-war-covid-companies-moving-supply-chains-2022-12#malaysia-has-for-years-been-eyeing-opportunities-emerging-from-companies-shifting-away-from-china-6">other low-cost locations in Asia.</a> This is especially as Beijing's pandemic policies drove home the uncertainty of depending on just one country for their supply chains.For much of 2020 to 2022, China's strict pandemic containment measures disrupted factory operations and logistics. Even tech giant Apple was burned late last year when its <a href="https://www.businessinsider.com/apple-iphone-pro-china-covid-19-protests-shortfall-2022-11" rel="">iPhone output</a> was hit by the country's zero-COVID drive.And then, <a href="https://www.insider.com/china-zero-covid-changes-tweaks-policy-2022-12">Beijing abruptly</a> rolled back its zero-COVID policy, in turn triggering a wave of infections that is <a href="https://www.ft.com/content/598c81b7-bbc7-40f2-ba04-eed0dddfb989" target="_blank" rel="noopener">wrecking havoc</a> on economic activities in China right now.The extent of the outbreak in China is not clear because Beijing has stopped publishing COVID case numbers and deaths from December 25. However, <a href="https://www.france24.com/en/live-news/20221223-hospitals-overflow-in-china-s-covid-wave" target="_blank" rel="noopener">hospitals</a> and <a href="https://www.bloomberg.com/news/articles/2023-01-03/bodies-pile-up-in-china-as-covid-surge-overwhelms-crematoriums" target="_blank" rel="noopener">funeral homes</a> are reportedly overwhelmed.Beijing only acknowledged six new coronavirus deaths since December 6, when the country U-turned on its zero-COVID policies. But Airfinity, a UK health data company, estimated on December 29 that around <a href="https://www.reuters.com/world/china/china-covid-deaths-accelerate-9000-day-uk-research-firm-airfinity-2022-12-29/" target="_blank" rel="noopener">9,000 are dying</a> from COVID each day in China.

PC giant Dell will reportedly stop using Chinese chips as soon as next year, and it shows how Washington-Beijing tensions are forcing companies to diversify their supply chains

Japan has announced a $221 million China exit subsidy for Japanese companies to shift their base to India and other regions. In April, amidst the coronavirus pandemic, outgoing <keyword id="1204728" type="PERSON" weightage="20" keywordseo="Japanese-Prime-Minister-Shinzo-Abe">Japanese Prime Minister Shinzo Abe</keyword> proposed building an economy that is less dependent on one country -- China, so that the nation can avoid supply chain disruptions. In mid-July, Japan's Ministry of Economy, Trade and Industry unveiled the first group of Japanese companies to subsidise shifting manufacturing out of China to Southeast Asia or Japan in a bid to build a more resilient supply chain. Ahead of the India-Japan summit, the Japanese government has announced it would add India and Bangladesh to a list of ASEAN countries to qualify for subsidies for Japanese manufacturers moving out of China. The move comes following a recent virtual meeting between the trade ministers of India, Japan and Australia to advance cooperation on building trusted supply chain resilience in the Indo-Pacific to reduce dependence on China, which is a major trade partner with all three countries. The SCRI (Supply Chains Resilience Initiative) is aimed to build an alternative supply chain, away from China. Commerce Minister Piyush Goyal explained, "diversification of supply chain is critical for managing the risks associated with the supply of inputs, including disciplining price volatility. We could provide the core pathway for linking value chains in the region by creating a network of reliable, long-term supplies and appropriate capacities". He further stated that the initiative could not have come at a more opportune time in the post-Covid-19 scenario when there is a likelihood of churning of supply chains in the Indo-Pacific region. He said that in May 2020, Prime Minister Modi had stressed that it is the need of the hour that India should play a big role in the supply chains. The Japanese government's supplementary budget earmarked 23.5 billion yen ($221 million) for businesses that wish to move their production to Southeast Asian nations from China. The country's manufacturers can now receive subsidies for pilot programmes and feasibility studies. The Japanese government's programme aims to ensure a steady supply chain of products like medical supplies and electrical components in case of any emergency. Currently, Japanese companies' supply chain relies heavily on China. The issue came to light during the Covid-19 pandemic when supplies from China were cut off. In the second round of applications, projects would contribute to the ASEAN-Japan supply chain, assuming that relocation will occur to India and Bangladesh. Feasibility studies on decentralising manufacturing plans were also carried out along with the experimental introduction of facilities. The first round of subsidies, which was announced in July, granted around 10 billion yen to 30 companies relocating their production sites to Southeast Asia. Another 57 firms are also receiving support for moving manufacturing facilities to Japan. Exodus of Manufacturing: Impact on China The movement of production capacity from China will increase unemployment in the communist country as jobs move away. The US-China trade tensions have already cost about two million industrial jobs in China. Its border aggression with India has seen the latter severe its trade and business ties giving China a major economic blow. China wants to move up the value chain and produce more high-tech goods as it has repeatedly indicated, for which it needs FDI and more open trade. China is beginning to miss out on these two factors as a result of the US-China trade war, tensions with neighbours on account of aggressive behaviour and suspension of human rights in Hong Kong. In the medium to long-term, China could see a larger negative effect on productivity. A reduction in productivity growth will hurt China's potential growth rate, which increasingly relies on technological innovation, rather than, for example, labour force growth. Finally, global value chains from China will be disrupted with countries like India, Bangladesh and the southeast Asian region taking away the giant's business. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/its-not-just-india-chinese-intelligence-has-its-eye-on-more-than-2-4-million-individuals-across-the-us-japan-canada-australia-and-the-uk/articleshow/78101034.cms">It's not just India — Chinese intelligence has its eye on more than 2.4 million individuals across the US, Japan, Canada, Australia, and the UK</a> <a href="https://www.businessinsider.in/defense/news/india-china-border-tension-will-be-in-focus-as-the-parliaments-monsoon-session-begins-today/articleshow/78098575.cms">India-China border tension will be in focus as the Parliament's Monsoon session begins today</a> <a href="https://www.businessinsider.in/finance/banks/news/all-eyes-on-parliaments-monsoon-session-the-banking-regulation-amendment-bill-2020-may-not-be-on-the-docket-for-long/articleshow/78101791.cms">All eyes on Parliament's Monsoon session — the Banking Regulation (Amendment) Bill 2020 may not be on the docket for long</a>

Japan offers $221 million as 'China-exit' subsidy for Japanese companies

New Delhi, Feb 28 () Former RBI governor Raghuram Rajan has said slowdown in growth is due to the current government focussing more on meeting its political and social agenda rather than paying attention to the economy. India can still reverse its slowing economic growth by paying attention to key issues, he said."It's a sad story, I think most recently, it is politics," Rajan said in response to a question on what was stopping India's growth which remains below potential.In an interview to Bloomberg TV, Rajan said unfortunately the current government after a massive election win has "focussed more on fulfilling its political and social agenda rather than paying attention to the economic growth"."Unfortunately, this drift has continued a pace of slowing growth, which was precipitated initially by some actions the government took such as the demonetisation and a poorly rolled out Goods and Services Tax (GST) reform," Rajan said.India's GDP growth hit nearly 7-year low of 4.7 per cent in the December quarter, as per official data released on Friday.The GDP growth for the quarter is the lowest since January-March of 2012-13.In the interview, which was telecast before the official numbers were released, Rajan said India has not paid sufficient attention to cleaning up the financial sector and unfortunately, that is leading to the slowing growth."These are things that they can change if attention is paid to them and appropriate actions are taken," Rajan, Professor of Finance at University of Chicago Booth School of Business, said.On being asked about the spread of the coronavirus globally and its impact, he said there will certainly be some legacy issues in terms of business rethinking in the global supply chain."If it is disrupted anywhere, the entire supply chain is held ransom and companies are going to start rethinking that should we actually have these really spread out global supply chain or to bring them back closer home and how much diversification should we have. Should we have multiple production sites across the world rather than have it focussed primarily in Asia," he said. KPM MKJ

Govt focussing more on political, social agenda than economy: Rajan

New Delhi, Mar 11 () Expressing concern over contraction in exports, a Parliamentary panel on Wednesday said the commerce ministry should take measures like diversification of the export basket for revival of growth. Department Related Parliamentary Standing Committee on Commerce said the volatility in growth of exports is still notable despite reaching the half trillion mark (USD 538.08 billion in 2018-19). It said that downslide in major exportable commodities and labour-intensive sectors depicts a "doom and gloom" scenario for India's trade in the long run. "The committee expresses its concern on the contraction of exports in the year 2019-20 as compared to the previous year. The committee is of the opinion that the (commerce) department should take all out measures for bringing a desired momentum on trade front," the report said. It stressed on the need for a calibrated approach, concerted efforts, diversification of export basket, removal of supply chain bottlenecks and simplification of export procedures, among others, to achieve the goal of making India a significant global player in goods and services trade with USD 1 trillion export volume by 2024-25. The committee recommended a detailed analysis of the performance and policy issues in exports before initiating new programmes, policy and schemes in the current year. It also asked for close monitoring of the existing schemes/policies to be taken up rigorously. The report urged the department to make vigorous efforts for market expansion and establish trade synergies with new emerging trade destinations in Africa, Latin America and West Asia to reduce overdependence on developed countries, especially the US and EU for exports, and to minimize uncertainties due to adverse global event/scenario. It recommended the government to be vigilant in checking fluctuations in exchange rate of rupee and unfair trade practices adopted by the trading partners. Besides, the committee pitched for setting up a monitoring committee to address key issues related to Free Trade Agreements. It also expressed concern on discriminating measures such as delisting India from 'Developing Beneficiary Country' under the 'Generalised System of Preferences (GSP)', inclusion of the country in 'Priority Watch List' by the United States Trade Representative (USTR) and increase in disputes against India in the WTO. Further, the report said the government should formulate a global value chain (GVC) integration policy to facilitate Indian industries' participation in GVCs. It added that merely discontinuing the MEIS (Merchandise Exports from India Scheme) before putting in place any suitable substitutive mechanism will impact the sectors which at present are under the garb of inverted duty structure. "The Committee recommended to make a careful evaluation and analysis of new scheme viz. Remission of Duties or Taxes on Export Products (RoDTEP) Scheme before its implementation for its compliance with global trade norms," it said. The report also expressed its "deep concerns" on the substantial reduction of the budgetary allocation made to agencies/commodity boards. "The curtailing of funds will impact the functioning of the schemes and programmes of the agencies and boards and the shortfall may lead to upsurge in liabilities in the coming years," it said. The committee has also recommended that the department should strive to evolve a robust mechanism to capture export data of e-commerce. RR ABMABM

Par panel expresses concern over contraction in exports, suggest steps to increase growth

<div class="KonaFilter image-container float_right"><div class="image on-image">Business Insider Video</div></div>FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
<a href="http://www.birchgold.com/jim-rogers-interview-qe-currency-gold-inflation/">Jim Rogers: I Have Learned To Know That Change Is Coming</a> (Birch Gold Group) 
Speaking to Birch Gold Group, Jim Rogers said one of the things he's learned over the years is to not think like the crowd.
"...No matter what we all know today, it's not going to be true in 10 or 15 years. You pick any year in history and go back and then look to see what everybody thought was true in that year, 15 years later the world had changed enormously. Enormously. And yet in that particular year everybody was convinced that this is the way the world was.
"…I have learned, for whatever reason, to know that change is coming, to know to think against the crowd, that the crowd is nearly always wrong and to try to think for myself. Now, I certainly make plenty of mistakes and have made plenty of mistakes in my life, but these are some of the things that I have learned, to try to think around the corner, try to think to the future if you want to be successful."
<a href="http://advisorperspectives.com/commentaries/russell_111413.php">'Diversification Is The Closest Thing To A Free Lunch In The Marketplace</a> (Advisor Perspectives)
"When diversification is out of favor, it may the right time to bet on its potential financial health benefits," writes Jeff Hussey of Russell Investments in a new Advisor Perspectives column. For those wondering why investors should keep away when the U.S. stock market has had a great run, Hussey writes that "diversification is the closest thing to a 'free lunch' that the marketplace has to offer." He also reminds us that diversification is the cheapest way to manage portfolio volatility. And that it doesn't just expand exposure to different assets but to different regions.
<a href="http://www.businessinsider.com/how-gold-is-flowing-from-west-to-east-2013-11">Gold Is Flowing From The Western World To The East</a> (World Gold Council)
Gold is moving from western markets to the east, according to the latest report from the World Gold Council.
"The recent dynamics of the gold market have worked to ensure that lower prices (caused, in part, by ETF outflows) boosted Asian demand to an extent sufficient to absorb the gold flowing from western markets. This trend continued in Q3 as ETF redemptions were again outweighed by demand from Asian and Middle Eastern consumers.
"Gold continued to work its way through the supply chain, to be converted from London Good Delivery bar-form, via the refiners, into smaller, Asian consumer-friendly denominations of kilo-bars and below"
<div class="KonaFilter image-container"><div class="image">World Gold Council</div></div><a href="http://www.businessinsider.com/hedge-funds-unprepared-for-dectaper-2013-11"></a>
<a href="http://www.sec.gov/divisions/investment/guidance/im-guidance-2013-12.pdf">Mutual Funds And Other Investment Companies That Suggest Safety In Their Name, Should Change It</a> (SEC) 
The SEC has told mutual funds and other investment companies to consider changing their names if they suggest protection from loss, if the fund does expose investors to market or other risks. 
"We believe that the terms "protected," "guaranteed," and similar terms, when used in a fund name without some additional qualification, may contribute to investor misunderstanding about the potential for loss associated with an investment in the fund.
"As a result, in the disclosure review process, the staff recently requested that some existing and new funds change their names. The staff took this action in response to an increase in the use of the term 'protected' in fund names in situations where that term was used without a qualification that would adequately describe the nature and limits of any protection offered by the fund."
<a href="http://www.businessinsider.com/hedge-funds-unprepared-for-dectaper-2013-11">Here Are The Assets That Hedge Funds Love And Hate</a> (Societe Generale)<a href="http://www.businessinsider.com/hedge-funds-unprepared-for-dectaper-2013-11"> </a>
A look at hedge fund positions shows that they would be "exposed" in the event the Fed announces an early taper to its $85 billion monthly asset purchase program. Hedge funds are positive on Nasdaq, 30-year Treasury bonds, crude oil and natural gas. They are fairly negative on corn, the 10-year Treasury notes and the yen.
<div class="KonaFilter image-container"><div class="image">SocGen</div></div>

JIM ROGERS: Investors Need To Remember That The Crowd Is Almost Always Wrong

The <keyword id="47276" type="General" weightage="20" keywordseo="economic-growth" source="Orion">economic growth</keyword> in <keyword id="119132" type="General" weightage="20" keywordseo="asia-pacific" source="Orion">Asia Pacific</keyword> will remain strong in 2024 and GDP is expected to grow by about 5 per cent in India and a host of emerging market countries, <keyword id="82981" type="General" weightage="20" keywordseo="fitch" source="Orion">Fitch</keyword> Ratings said on Wednesday. In its report titled '<keyword id="156416" type="General" weightage="20" keywordseo="apac" source="Orion">APAC</keyword> Cross-Sector Outlook 2024', Fitch said the outlooks for the banking sectors in India and Indonesia, as well as APAC emerging markets as a whole, move to improving in 2024, partly reflecting the robust economic backdrop. "Economic growth in APAC will generally remain strong in 2024, especially in emerging markets (EMs), supporting sector outlooks across the region. We expect real GDP to expand by, or above, 5 per cent in India, Indonesia, the Philippines and Vietnam, and China's performance will still be strong by most other countries' standards," Fitch said. The <keyword id="6356076" type="General" weightage="20" keywordseo="indian-economy" source="Orion">Indian economy</keyword> grew 7.2 per cent in 2022-23 fiscal year. India's GDP expanded 7.8 per cent and 7.6 per cent in the June and September quarters, respectively. Fitch had last month said it expects India to be among the world's fastest-growing large sovereigns, with resilient GDP growth of 6.9 per cent this fiscal, followed by 6.5 per cent in 2024-25. "Robust regional economic growth - particularly in Asia's large emerging markets - should offset headwinds from slowing growth in China, weak global demand and high interest rates, helping to support performance across sectors in APAC in 2024," Fitch Ratings Senior Director Duncan Innes-Ker said. Fitch said headwinds from slower Chinese growth, weak global demand and higher interest burdens following the rise in interest rates over 2022-23 will weigh on performance for many sectors. But the bulk of Fitch's APAC sector outlooks for 2024 remain neutral. "Sino-US tensions have eased recently, but we expect relations to remain challenging, which will lead companies to pursue further supply-chain diversification to limit exposure to geopolitical risks," Fitch said.

Growth in Asia Pacific emerging markets to remain strong in 2024: Fitch

The <keyword id="1374696" type="PERSON" weightage="20" keywordseo="chemical-sector">chemical sector</keyword> is expected to grow at 1.2x-1.3x of the GDP multiplier in <keyword id="5027223" type="COMPANY" weightage="20" keywordseo="FY22">FY22</keyword>, <keyword id="1498859" type="COMPANY" weightage="20" keywordseo="India-Ratings-and-Research">India Ratings and Research</keyword> (<keyword id="1704466" type="PERSON" weightage="20" keywordseo="Ind-Ra">Ind-Ra</keyword>) said. Accordingly, the <keyword id="387534" type="PERSON" weightage="20" keywordseo="ratings-agency">ratings agency</keyword> has assigned the sector an improving outlook for FY22. It expects favourable market conditions across the broad <keyword id="30850" type="COMPANY" weightage="20" keywordseo="chemical">chemical</keyword> subsectors, along with a healthy rebound in end-user industries, following the Covid-19 led business disruptions in 1HFY21. "Ind-Ra expects GDP growth to rebound to 10.4 per cent in FY22, and the chemical sector to grow at 1.2x-1.3x of the GDP multiplier. Chemical sector participants are impacted by a varying degree of end-market demand pressure," the agency said in a report. According to the report, issuers catering to the auto, textiles and construction sectors and in the certain bulk commodities space are expected to witness an extended recovery cycle throughout FY22, whereas those catering to pharma, agrochemicals and personal care are already witnessing a demand surge. "Most companies benefited from stable and lower feedstock prices, even as the prices of final products increased during 2HFY21, supporting margins. India's push for self-sufficiency coupled with efforts towards supply chain diversification away from China is enabling large capex, which remains a monitorable," the report said. In addition, the agency expects chemical producers to generate <keyword id="10190717" type="UNKNOWN" weightage="20" keywordseo="strong-cash-flows">strong cash flows</keyword> from operations, given the volume uptick across end-user industries, higher realisations and stable feedstock prices. "This would help limit the use of external debt for large capital budgets, as cash flows will be directed towards business expansions, leading to only moderate deterioration in credit metrics during the expansion phase, largely within the rating headroom available for most issuers," it said. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/future-retail-shares-take-a-massive-hit-as-it-loses-the-case-against-amazon-in-delhi-high-court/articleshow/81583165.cms">Future Retail shares take a massive hit as it loses the case against Amazon in Delhi High Court</a> <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-9r-will-be-the-companys-next-affordable-smartphone-india-launch-confirmed-for-march-23/articleshow/81586104.cms">OnePlus 9R will be the company’s next affordable smartphone, India launch confirmed for March 23</a> <a href="https://www.businessinsider.in/thelife/article/a-4-foot-tall-humanoid-robot-called-doozy-may-just-be-the-party-symbol-for-tamil-nadus-immk-but-it-can-do-much-more-than-that/articleshow/81605666.cms">A 4-foot-tall humanoid robot called Doozy may just be the party symbol for Tamil Nadu’s IMMK, but it can do much more than that</a>

You Searched For "supply chain diversification" and got 11 results

The disrupted supply chains that left store shelves devoid of toilet paper and cleaning supplies could end up being a good lesson for American companies

Michelle Mark

India emerges as US's new destination for "friend-shoring" pharmaceutical supply chains

ANI

China tells foreign business groups it will help fix supply chain problems as strict lockdown measures hit factories and transport, a report says

Abby Wallace

Add the climate crisis to the long list of things messing up supply chains this summer

Huileng Tan

PC giant Dell will reportedly stop using Chinese chips as soon as next year, and it shows how Washington-Beijing tensions are forcing companies to diversify their supply chains

Huileng Tan

Japan offers $221 million as 'China-exit' subsidy for Japanese companies

IANS

Govt focussing more on political, social agenda than economy: Rajan

PTI

Par panel expresses concern over contraction in exports, suggest steps to increase growth

PTI

JIM ROGERS: Investors Need To Remember That The Crowd Is Almost Always Wrong

Mamta Badkar

Growth in Asia Pacific emerging markets to remain strong in 2024: Fitch

PTI

Chemical sector to grow at 1.2x-1.3x of GDP multiplier, says India Ratings and Research

IANS

Popular Keywords

Buying Guides