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China's Extension of New Year Holidays May Trigger Supply Chain Disruptions

Joyce Huang

   Several Chinese provinces and cities, including Shanghai, Guangdong,
   and Jiangsu, have ordered businesses closed during the week-long
   Chinese New Year vacation, not to resume operation until February 10.

   In Hubei province, the outbreak's epicenter, businesses will remain
   shut until February 14, a two-week extension of the Chinese New Year
   holidays.

   That has worried many China-based businesses, including those from
   Taiwan, as they have begun to gauge the possibility of disrupted supply
   chains if China fails to contain the viral outbreak soon.

   Supply Chain Disruption

   "Taiwan has close economic ties to China. Lots of key components and
   panels are made in China especially in Wuhan -- a major manufacturing
   site for information technology products. We're mostly worried that
   delayed resumption of factory operation will trigger supply chain
   disruption," Tsai Lien-sheng, secretary-general of Chinese National
   Federation of Industries in Taipei, said.

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