Odd Lots This Is What The Coronavirus Means For The Chinese Supply Chain
Feb 26, 2020
Dan Wang, a China tech industry analyst at Gavekal Dragonomics, delves into the significant effects of the coronavirus on the Chinese supply chain. He discusses how Apple's revenue warning reveals vulnerabilities tied to its factories in China. The conversation highlights ongoing labor shortages and the challenges smaller businesses face against larger corporations. Additionally, Wang examines the long-term implications for Chinese manufacturing amidst geopolitical tensions and the quest for technological independence.
AI Snips
Chapters
Transcript
Episode notes
Market Apathy Towards Supply Chain Disruption
- Investors remain unconcerned about the coronavirus impact on supply chains, despite Apple's revenue warning.
- This market sentiment contrasts with prior concerns over US-China trade tensions.
Electronics Supply Chain Vulnerability
- Electronics supply chains face unique challenges due to their complexity, making recovery from disruptions harder.
- Unlike general macroeconomics, electronics manufacturing requires all components to be available simultaneously.
Supply Chain Rigidity
- Shifting electronics supply chains is difficult and hasn't happened much due to trade tensions.
- Component shortages pose a greater challenge than tariffs, hindering production more directly.