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After more than 20 days of heavy rains here in Hong Kong and the densely populated neighboring South China Province of Guangdong, the situation is getting increasingly serious as some of the main rivers in the area have started to flood and more than 1.5 mill. people have been forced to evacuate their homes.
Referred to as Chinas economical powerhouse, the Pearl River Delta is known for its thousands of manufacturing enterprises and factories producing high-tech products, IT equipment and consumer electronics for worldwide exports.
Fortunately none of our main suppliers or partnering USB flash drive factories have been directly affected, but the entire province is experiencing transportation difficulties and economical losses due to the thunderstorms that are also starting to show impact on some of the local manufacturers and factories throughout the Pearl River Delta.
Some of China's main export zones around Foshan, Zhongshan and Dongguan are starting to feel the impact of raising waters and are predicting worse flooding should the rain continue to fall. Economic losses due to the rains in the Pearl River Delta are already significant, but in case of continuing rains this will have further impact and might also have wider and severe affects on the general supply chains.
In case of of continues floods and spreading waters the impact of the economical damage might grow and start to directly affect also production sites and supply chains for a wide range of various products.
As we've already reported earlier, the general raising inflation in China is starting to show first impacts also on USB flash drives and pricing for purchase and production of promotional and customized USB flash memory: A decreasing spot-market price for NAND flash memory is loosing momentum against the slowly raising local production costs due to the gaining of the Chinese Yuan, the raising labor costs and the increasing prices for imported raw materials.
With not only the biggest volume floods in over 50 years but simultaneously also the highest tides in over 10 years, the full moon on the 19th is expected to have further impact on the raise of the water.
Even though heavy rain is still falling as we write, the current weather forecast leaves us with reason for optimism: sunshine and occasional rains are predicted from Thursday.
Our hearts and minds touch out to all our trusted partners, suppliers and manufacturers over on the Mainland as we wish you lots of strength to withstand the floods and hope with you for a clear sky over Guangdong Province!
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