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.
The super typhoon made landfall on China’s Hainan Island on Thursday. Yagi moved westward, forcing a million people to evacuate in South China and claimed more than a dozen lives in Vietnam, and damaging the Haiphong industrial region, home to several factories of international companies, including LG Electronics.
Meanwhile, businesses, public services and transportation networks closed in China’s Guangzhou and Hong Kong provinces, creating a growing backlog in manufacturing and shipping. some companies Expect it to take weeks to resolve the issue and costs to rise as a result.
China had already experienced an earlier and more intense flood season in 2024, especially in its manufacturing hubs in Guangzhou, with analysts directly citing Climate change Bloomberg noted that this was a factor in the country’s latest industrial activity figures, which fell short of expectations.
