Supply of Chinese smartphones to be hit with containers stuck at customs

New Delhi

The reactions came after the Indian Cellular and Electronics Association (ICEA), in a letter to Finance Minister Nirmala Sitharaman, said all China-origin imports of the electronics industry have come under adverse action by customs at the ports without prior warning, which has impacted the supply chain.

 A leading Chinese smartphone maker said on the condition of anonymity a long-term delay would force them to pass on the burden to the consumers as they would be left with little supplies soon as the demand has risen. “We have just started to limp back to normal after facing losses for nearly three months and now, our consignments are stuck at various ports. Keeping the rise in demand in concern, we will not be able to sustain if the goods are not cleared maximum within a week’s time,” lamented a Chinese smartphone firm spokesperson, adding the price hike will be an “imminent step.” Another spokesperson from a rival brand said there is a good demand coming from all locations in the country.“As there is a rebound after monthslong lockdown, if shipments are stuck for a longer time, it will affect all brands irrespective of whether Chinese or Indian as a larger supply chain would be hampered,” the spokesperson said. In the letter to the FM, Pankaj Mohindroo, Chairman, ICEA said they understand that even goods already cleared and loaded in trucks for transport to the users’ warehouse are being recalled and examined. “Opening up finished products for full examination will soil them, making it impossible to sell in the market. This will lead to millions of dollars of losses, a shortage in the market and spook large foreign investors,” he wrote.

 Holding back Chinese electronics items would mean acute shortage across the board in factories (components) and markets (finished products).

India imports nearly $56 billion worth of electronic items from China annually.