the new surge in covid cases in china is making indian companies from electronics and apparel manufacturers to gold and diamond exporters worried about another bout of supply chain disruptions as well as exports to the chinese market getting hurtaccording to consumer electronics companies their component suppliers have warned them about slowing production at chinese factories where many workers are down with the infection similar concerns are raised by apparel manufacturers who are heavily dependent on china for raw materials with the chinese new year holidays too around the corner which could cause shipment delays many indian companies are placing orders in bulk to ensure that they have enough stock of components and raw material said industry insiders advt situation is very bad in china with component suppliers saying their factory production is hit which will have a cascading effect on our supplies said the chief of one of the largest electronics contract manufacturers information sketchy problem is information coming in is very sketchy so we are yet to gauge the exact impact this covid wave will have he saidsatish ns the india chief at chinese electronic company haier said his company is advancing the purchase of components to ensure india production is not impactedthe covid surge in china is driven by a complete reversal of its zerocovid policy while infections have touched alltime high epidemiologists have warned at this rate almost 60 of the chinese population will get covid in the next 90 days and there could be multiple such waves these could slow down production in china and break down supply chains globallysmartphone brands are expected to face a supply crunch for components from the middle of next month if the current covid surge continues in china according to market trackers but they could still be able to serve the immediate local demand since the market is muted and they are already stocked up on components to meet shorterterm requirementsif the situation plays out for another three weeks we may see disruptions in component supplies for the smartphone brands that rely heavily on components from chinese factories said faisal kawoosa chief analyst techarc but there could be an impact on the launches slated for early next year advt exporters of diamond and engineering goods are concerned about extended holidays during the chinese new year further hurting demand that has weakened already since october compared with a year earlierindias exports of cut and polished diamonds to china in november declined by 4 over last year at about 125 billion china is the second largest buyer of diamonds from india accounting for 30 of total exports engineering goods exports fell yearonyear by 58 in november and 64 in october as per data by engineering export promotion council of indiagarment manufacturers and exporters in india source accessories from china which are required for manufacturing if the evolving covid situation impacts the supply of accessories the brands that we supply to may have to look for alternative sources said raja m shanmugam