This blog post is being published for The Trade Practitioner
as part of a content partnership with our Shanghai and Beijing Offices.
Please contact Daniel Roules and Yi (Nic) Wan with any
questions.
In a prior client advisory on
the legal implications of coronavirus disease 2019
("COVID-19") in China, we explored employment, force
majeure, data privacy, tax and other issues. This client advisory
supplements that by identifying some specific supply chain issues
that we are seeing. China is the manufacturing hub of the world,
and supply chain issues there are generating global
consequences.
Product Quality
Due to the nationwide shutdown of factories and businesses, many
companies now confront a shortage of raw materials and components.
There is also growing concern among some manufacturers that
suppliers that are struggling to meet demand in this challenging
market may substitute materials that have not been quality-tested
or are not in-spec. A second issue we
