The news
Major manufacturing and shipping centers in China and Vietnam are facing widespread disruptions and closures following Super Typhoon Yagi, one of the strongest storms ever to hit the region.
Super Typhoon Yagi made landfall on China’s Hainan Island on Thursday. It moved westward, forcing the evacuation of a million people in southern China and killing more than a dozen people in Vietnam. It also wreaked havoc on the Haiphong industrial region, home to several international companies, including LG Electronics.
Meanwhile, businesses, public services and transportation networks have been shut in China’s Guangzhou and Hong Kong provinces, creating a growing backlog of production and shipping that some companies expect will take weeks to clear, pushing up costs.
China has already suffered a more severe flood season in 2024, particularly in manufacturing hubs in Guangzhou. Analysts cited climate change as a factor in the country’s latest industrial activity figures, which fell short of expectations, Bloomberg reported.
