The global economy — already struggling with war in Ukraine and the stagflation risks it’s fanning — is bracing for greater disruption as China scrambles to contain its worst outbreak of Covid-19 since the pandemic began.
If China fails to contain omicron’s spread, further movement restrictions would derail the economy’s promising start to the year, weakening a key pillar of global growth. As manufacturer to the world, any disruptions to exports resulting in shortages could also drive up inflation internationally. A China slowdown would exacerbate the risk of stagflation and global supply chain problems.
Globally, the economic impact of Covid is declining as governments ease restrictions and many move towards a ‘living with Covid’ approach. However, for China, omicron is a key risk for domestic demand, output and, possibly, supply chains.
China’s latest attempt to suppress an outbreak of Covid-19 with lockdowns in several cities has disrupted global supply chains, which is likely to lead to lower growth and profitability across the technology industry.
Several companies in China’s manufacturing centres in both the south and northeast have halted operations amid the most sweeping COVID-19 lockdowns in the country since the start of the pandemic in Wuhan.
If lockdown restrictions spread, affecting access to the ports as well as workers, as happened in 2020 when COVID-19 measures led to record queues for container ships, analysts fear freight may see a disruption, leading to both bottlenecks and rising freight costs as was seen then.
The current surge has certainly posed the biggest test yet to China’s elimination strategy, although the official media has made clear that the “dynamic zero COVID” strategy is here to stay and China is not likely to open up anytime soon.
Reference:
https://economictimes.indiatimes.com/small-biz/trade/exports/insights/world-economy-faces-supply-hit-as-china-battles-covid-again/articleshow/90250149.cms
https://www.thehindu.com/news/international/chinas-lockdowns-spur-concern-over-supply-chain-freight-impact/article65227469.ece
In a converging policy shift on both sides of the Atlantic, European regulators this week published a roadmap toward fully replacing animal testing for chemical safety assessments, while the US Environmental Protection Agency issued a rare update to its list of alternative test methods.
The global pharmaceutical fine chemicals sector is undergoing a profound transformation, with India emerging as a central growth engine amid sweeping changes in supply chain strategies and regulatory priorities. As drug makers and contract manufacturers adapt to stricter oversight and evolving sourcing preferences, the industry’s focus is shifting rapidly from cost efficiency to compliance, localisation and technical sophistication.
Stakeholders are being encouraged to weigh in on the European Chemicals Agency (ECHA) 60-day public consultation period related to a planned ban on per-and-polyfluoroalkyl (PFAS) substances, also known as forever chemicals.
We’re pleased to share an important milestone in our sustainability journey.
ExSyn has been awarded the EcoVadis Platinum Medal, placing us among the top 1% of companies globally evaluated for environmental, social and ethical performance.
While fears around a complete shutdown of the Strait of Hormuz primarily raise concerns around oil prices and energy security, recent history shows that even partial disruptions or security threats along key sea routes can quickly spill over into freight inflation, longer transit times and working capital stress for exporters and importers.
The European Union (EU) has agreed to offer Indian pharmaceutical and medical devices companies preferential access to EU market, along with cutting tariffs on 97.5 percent of chemical products to zero.
As we approach the close of this year, we at ExSyn would like to extend our heartfelt gratitude for your trust, collaboration, and continued support. Your confidence in our products and services has been the driving force behind our growth and success.
The U.S. Food and Drug Administration (FDA) today announced significant action to make it faster and less costly to develop biosimilar medicines, which are lower-cost “generic” alternatives to biologic drugs that treat serious and chronic diseases.
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