China's COVID surge poses 'uncertainties' for global supply chain
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China’s COVID surge poses ‘uncertainties’ for global supply chain

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As supply chain woes continue to add to the rising cost of living, concern over how China’s zero-COVID policy may further add to it is on the rise, especially the impact it might have on Canada.

Beijing’s tough COVID-19 rules and factory shutdowns can wreak havoc on supply chains that Canada relies on. Now, with China easing its zero-COVID policy, the virus has surged, creating an environment for new variants to thrive and uncertainty for the global economy, including Canada, according to some experts.

Ari Van Assche, a professor at the department of International Business from HEC Montreal, thinks that China’s move to drop COVID rules has created a lot of uncertainty that could definitely “put a big drag” on the world economy.

“It’s very difficult to understand what is happening in China because data on supply chain issues or on the spread of COVID in China is not very reliable,” Van Assche told Global News.

On Jan. 4, World Health Organization (WHO) expressed concerns about the lack of outbreak data from China, accusing China of not giving an accurate picture of the situation there and underrepresenting the number of hospitalizations and deaths from the virus.

The question of whether or not the zero-COVID policy would influence supply chains “depends very much” on where China wants to go, said Van Assche.

“If China is able to move on and ensure that we’re going back to normal, despite the (lack of) clarity that we have right now … then 2023 might be a fantastic year of breaking out of collapse,” said Van Assche.

“But if it leads to significant disruptions in an economy that already is trying to catch its breath to get to normal, it’s not really clear what’s in store for 2023, or what 2024 will look like.”

Supply chains have gone haywire ever since the World Health Organization declared COVID-19 to be a pandemic in March 2020. Shipping containers were diverted to medical supplies or held unused in far-flung ports. And in the resulting chaos, Canadians saw compound effects: a semiconductor shortage, a dearth of rental cars, a rise in lumber prices.

The trend somewhat balanced through most of 2022, with global supply chain pressures increasing moderately in November, continuing a drift seen in October, albeit at a lower rate.

Delayed shipments from China was the largest factor contributing to the rise in supply chain pressures last year, according to a Global Supply Chain Pressure Index report.

China’s National Bureau of Statistics stated on Dec. 31, 2022, that factory activity had shrunk for three months leading to December as the country dropped its zero-COVID policy.

According to Werner Antweiler, an associate professor at the University of British Columbia Sauder School of Business, China’s factory model has made the country and its workers vulnerable to COVID-19 outbreaks.

“In general, China’s concentration of manufacturing in a number of ‘campuses’ in places like Shenzhen, such as Foxconn’s Longhua Science and Technology Park, makes it vulnerable to significant new COVID outbreaks,” Antweiler told Global News in an email.

The outbreaks could “have an outsized effect with respect to disrupting global supply chains,” said Antweiler. “It is possible that China may need to revert to localized lockdowns in the absence of good alternatives.”

 

Is Canada prepared to deal with supply chain snarls?

Van Assche says he believes there will be some supply chain disruptions, but it will not be on the same scale as Canada has seen in the past, as companies are slowly adapting to the new reality.

“It will likely have an impact on a lot of companies individually, but it won’t be of the same level that we’ve seen during the perfect storm of supply chain disruptions during the pandemic,” said Van Assche. He noted that the demand for goods coming from China has also eased up with Canadian consumers opting to buy less Chinese goods.

“The severe stress on the global shipping industry has been going down, so is not as difficult as it was in the past for companies to find space on containers now,” said Van Assche.

Van Assche says the Canadian government needs to identify what goods are essential to the public and come up with strategies to build a secure supply chain.



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Canadian transport minister announces steps to ease export

 


In an email to Global News, a spokesperson for Innovation, Science, and Economic Development Canada said that the government is monitoring signs of strain in critical supply chains and infrastructure to “ensure the timely movement of goods and materials as the economy recovers.”

It said that past experiences have “demonstrated the urgency and necessity to diversify our supply and trade bases, embrace digital technologies, move away from linear supply chain networks, and build domestic manufacturing capacity in critical inputs and products.”

There can be various causes behind supply chain disruptions, and factors impacting shortages are often exclusive to a commodity or industrial sector, the innovation agency noted.

“Common elements affecting multiple supply chain disruptions, however, are the same for Canada as with other nations around the world – enormous shifts in demand, transportation issues and container shortages, and exacerbated shortages in skilled labour.”

“To enhance supply chain security in specific commodities such as critical minerals, batteries and semiconductors as well as other inputs that are important to support critical sectors like life sciences, manufacturing, transportation, and defence,” the Canadian government is working closely with international partners, they said.

Transport Canada also said they have been working closely with manufacturing industries and other supply chain partners to ease congestion. They implemented the Supply Chain Task Force in 2022 and continue to support investments in transportation infrastructure projects.

In an email to Global News, the agency said that the government “continues to engage with industry and other supply chain partners on any impacts to the fluidity and reliability of the system.”

Further, the National Trade Corridors Fund (NTCF) is helping ease “bottlenecks and congestion in Canada’s transportation system,” they added, while also “enhancing trade hubs and gateways so it is easier for Canadian businesses to get their goods to consumers around the world.”

“The Government of Canada remains committed to bringing forward a National Supply Chain Strategy, with further details to be announced in Budget 2023,” they said.

— With files from Reuters

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With grief lingering, Blue Jackets GM Waddell places focus on hockey in wake of Gaudreau’s death

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BUFFALO, N.Y. (AP) — Hearing the familiar sounds of clacking sticks and pucks banging off the boards and glass while watching Columbus Blue Jackets prospects from the stands of a cold rink on a warm late-summer afternoon was not enough to wash away the lingering residuals of grief for Don Waddell on Saturday.

That, the Blue Jackets’ general manager acknowledged, will take more time than anyone can guess — weeks, months, perhaps an entire season and beyond.

What mattered is how spending the weekend attending the Sabres Prospects Challenge represented a start to what Waddell called among the first steps in refocusing on hockey and the future in the aftermath of the deaths of Columbus star Johnny Gaudreau and his brother, Matthew, who were struck by a suspected drunken driver while riding bicycles on Aug 29.

“We got to play hockey,” Waddell said. “We’re not going to forget about Johnny and his family, the Gaudreau family.”

He then reflected on the speech Johnny Gaudreau’s wife, Meredith, made during the brothers’ funeral on Monday, by urging those in mourning to move forward as she will while focusing on raising their children.

“Everybody knows that Johnny wants them to play hockey,” Waddell said. “And everybody’s rallying around that.”

The resumption of hockey in Columbus began last week, when most Blue Jackets players returned to their facility to be together and lean on each other at the urging of Waddell and team captain Boone Jenner. And it will continue on Thursday, when the team opens training camp, exactly three weeks since the Gaudreaus were killed.

“Tragic. Senseless. But now we got to focus on trying to get our team ready to play hockey this year,” Waddell said. “We all mourn and heal differently, but I think as a team being together like that is going to be critical for them to get moving forward.”

Tragedy is no stranger to Waddell or the Blue Jackets.

Waddell was general manager of the then-Atlanta Thrashers in 2003 when Dany Heatley lost control of his car and struck a wall, with the crash killing passenger and teammate Dan Snyder. In 2021, Blue Jackets goalie Matiss Kivlenieks died during a July Fourth fireworks accident.

Waddell placed the emphasis on himself and coach Dean Evason — both newcomers to Columbus this offseason — to guide the team through what will be an emotional season.

“Now, do I think there’s going to be some dark days? I won’t be surprised,” Waddell said.

Reminders of the Gaudreaus’ deaths remain apparent, and reflected in Buffalo on Friday night. A moment of silence was held in tribute to the brothers before the opening faceoff of a game between the Blue Jackets and Sabres.

Afterward, Columbus prospect Gavin Brindley recalled the times he spent with Johnny Gaudreau in Columbus and as teammates representing the United States at the world hockey championships in the Czech Republic in May.

“He was one of the biggest mentors for me at the world championships,” Brindley said. “I couldn’t tell you how many times we hung out with Meredith, pictures on my phone. It’s just so hard to look back and see that kind of stuff.”

The NHL and NHL Players’ Association are providing the Blue Jackets help in the form of grief counseling, crowd security at vigils and addressing hockey issues, such as potentially altering the league’s salary cap rules to provide Columbus relief from having to reach the NHL minimum payroll because of the void left by Gaudreau’s contract.

“The Blue Jackets, I don’t think anybody’s focused from an organizational standpoint, from a hockey standpoint as to what comes next, because I think everybody’s still in shock,” NHL Commissioner Gary Bettman told The Associated Press last week. “I don’t think anybody’s focused right now other than on the grieving part, which is understandable.”

Much of the burden has fallen to Waddell, who has been in discussions with the NHL and the NHLPA and dealing with outreach programs with the Blue Jackets’ partner OhioHealth, while also overseeing preparations for training camp and gauging his prospects in Buffalo.

There’s also his roster to attend to, which he said has two openings at forward, one involving Justin Danforth, who may miss the start of the season because of a wrist injury. Waddell didn’t have to mention the second opening.

Tiring and emotional as it’s been, Waddell found comfort being in his element, a rink, and looking ahead to the start of training camp.

“The guys are in really good shape. We’ve done a lot of testing already and they’re eager to get going,” Waddell said. “We have a reason to play for. And we’ll make the best of it.”

The Blue Jackets later Sunday signed veteran winger James van Riemsdyk to a one-year contract worth $900,000.

“James van Riemsdyk has been a very consistent, productive player throughout his career,” Waddell said. “Bringing him to Columbus will not only provide depth to our group up front, but also valuable leadership and another veteran presence in our dressing room.”

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AP Hockey Writer Stephen Whyno in New York contributed to this report.

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PSG says defender Nuno Mendes target of racial abuse after a French league game

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PARIS (AP) — Paris Saint-Germain defender Nuno Mendes was the target of abusive and racist comments on social media after a French league game.

The club condemned the abuse and expressed its “full support” Sunday for the Portugal left back, who was targeted following PSG’s 3-1 win against Brest on Saturday.

Mendes, who is Black, shared on his Instagram account a racist message he received.

During the match, Mendes brought down Ludovic Ajorque in the box for a penalty that Romain Del Castillo converted to give Brest the lead.

“Paris Saint-Germain doesn’t tolerate racism, antisemitism or any other form of discrimination,” the club said. “The racial insults directed at Nuno Mendes are totally unacceptable … we are working with the relevant authorities and associations to ensure those responsible are held accountable for their actions.”

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AP soccer:

The Canadian Press. All rights reserved.



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Slovenia’s Tadej Pogacar wins Grand Prix Cycliste de Montreal

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MONTREAL – Tadej Pogacar was so dominant on Sunday, Canada’s Michael Woods called it a race for second.

Pogacar, a three-time Tour de France champion from Slovenia, pedalled to a resounding victory at the Grand Prix Cycliste de Montreal.

The UAE Team Emirates leader crossed the finish line 24 seconds ahead of Spain’s Pello Bilbao of Bahrain — Victorious to win the demanding 209.1-kilometre race on a sunny, 28 C day in Montreal. France’s Julian Alaphilippe of Soudal Quick-Step was third.

“He’s the greatest rider of all time, he’s a formidable opponent,” said Woods, who finished 45 seconds behind the leader in eighth. “If you’re not at your very, very best, then you can forget racing with him, and today was kind of representative of that.

“He’s at such a different level that if you follow him, it can be lights out.”

Pogacar slowed down before the last turn to celebrate with the crowd, high-five fans on Avenue du Parc and cruise past the finish line with his arms in the air after more than five hours on the bike.

The 25-year-old joined Belgium’s Greg Van Avermaet as the only multi-time winners in Montreal after claiming the race in 2022. He also redeemed a seventh-place finish at the Quebec City Grand Prix on Friday.

“I was disappointed, because I had such good legs that I didn’t do better than seventh,” Pogacar said. “To bounce back after seventh to victory here, it’s just an incredible feeling.”

It’s Pogacar’s latest win in a dominant year that includes victories at the Tour de France and Giro d’Italia.

Ottawa’s Woods (Israel Premier-Tech) tied a career-best in front of the home crowd in Montreal, but hoped for more after claiming a stage at the Spanish Vuelta two weeks ago.

“I wanted a better result,” the 37-year-old rider said. “My goal was a podium, but at the same time I’m happy with the performance. In bike racing, you can’t always get the result you want and I felt like I raced really well, I animated the race, I felt like I was up there.”

Pogacar completed the 17 climbs up and down Mount Royal near downtown in five hours 28 minutes 15 seconds.

He made his move with 23.3 kilometres to go, leaving the peloton in his dust as he pedalled into the lead — one he never relinquished.

Bilbao, Alaphilippe, Alex Aranburu (Movistar Team) and Bart Lemmen (Visma–Lease) chased in a group behind him, with Bilbao ultimately separating himself from the pack. But he never came close to catching Pogacar, who built a 35-second lead with one lap left to go.

“It was still a really hard race today, but the team was on point,” Pogacar said. “We did really how we planned, and the race situation was good for us. We make it hard in the last final laps, and they set me up for a (takeover) two laps to go, and it was all perfect.”

Ottawa’s Derek Gee, who placed ninth in this year’s Tour de France, finished 48th in Montreal, and called it a “hard day” in the heat.

“I think everyone knows when you see Tadej on the start line that it’s just going to be full gas,” Gee said.

Israel Premier-Tech teammate Hugo Houle of Sainte-Perpétue, Que., was 51st.

Houle said he heard Pogacar inform his teammates on the radio that he was ready to attack with two laps left in the race.

“I said then, well, clearly it’s over for me,” Houle said. “You see, cycling isn’t that complicated.”

Australia’s Michael Matthews won the Quebec City GP for a record third time on Friday, but did not finish in Montreal. The two races are the only North American events on the UCI World Tour.

Michael Leonard of Oakville, Ont., and Gil Gelders and Dries De Bondt of Belgium broke away from the peloton during the second lap. Leonard led the majority of the race before losing pace with 45 kilometres to go.

Only 89 of 169 riders from 24 teams — including the Canadian national team — completed the gruelling race that features 4,573 metres in total altitude.

Next up, the riders will head to the world championships in Zurich, Switzerland from Sept. 21 to 29.

Pogacar will try to join Eddy Merckx (1974) and Stephen Roche (1987) as the only men to win three major titles in a season — known as the Triple Crown.

“Today gave me a lot of confidence, motivation,” Pogacar said. “I think we are ready for world championships.”

This report by The Canadian Press was first published Sept. 15, 2024.



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