China says raw materials shortage, demand driving up prices of supplies

A day after India expressed concerns about rising prices of critical medical supplies from China, the Chinese Foreign Ministry in Beijing said soaring demand from India and a shortage of raw materials

A day after India expressed concerns about rising prices of critical medical supplies from China, the Chinese Foreign Ministry in Beijing said soaring demand from India and a shortage of raw materials was driving costs up. The Chinese government said on Friday companies there had received orders for more than 70,000 oxygen concentrators from Indian companies. Chinese media reports have said firms were adding production lines and hiring workers to meet the surge in orders. On Thursday, India’s Consul General in Hong Kong, Priyanka Chauhan, expressed concerns about rising prices to the South China Morning Post. “Our expectation at this point is that the supply chain should remain open and product prices should remain stable,” she said. “Even if there is a little bit of supply demand pressure, there has to be some stability and predictability to product prices. And there has to be a sense of governmental level support and efforts. I don’t have the information as to how much influence the Chinese government can have in this matter but if they can, then it would be welcome.”