Exclusive: After price surge, China now sending sub-standard oxygen concentrators to India

It is a matter of life and dying, however China is selecting to make income at the price of folks’s lives. Not solely have Chinese firms indulged in surge pricing with a rise in demand, they’re now sending sub-standard Covid-19 associated crucial tools to India.

India Today has accessed paperwork and photographic proof to present how the businesses haven’t solely jacked up costs but in addition altered specs and parts utilized in making the oxygen concentrators for India, compromising on the standard and life cycle of the machine, which could lead on to a medical disaster in India.

Different firms are quoting separate costs for the 5-litre and 10-litre concentrators. While the charges differ, most present a rise in the fee up to now weeks. This at the same time as Beijing has been attempting to painting the exports as a “humanitarian” gesture.

“Chinese companies carry forward the spirit of humanitarianism, focus on saving lives, respond to the wants and needs of the Indian people. That reveals their social responsibilities as well as the goodwill in helping India fight #Covid-19. Thumbs-up for what they have done,” Chinese envoy to India Ambassador Sun Weidong had tweeted applauding the aid efforts.

But, in actuality, in case you have a look at the invoices of one of many producers, Yuwell, the costs stood at $340 per piece on April 30. Weeks later, the price of every container went up to $460 (as of May 12).

All these procurements are primarily by firms which might be donating to India, however there was no concession by any means.

The USISPF (US-India Strategic Partnership Forum) alone has pledged 1 lakh oxygen concentrators to India as a part of the Covid aid help. The majority of the tools is being procured from China.

The two invoices present the price of an oxygen container went up to $460 from $340. (Photo:India Today)

“The current health crisis has exposed vulnerabilities in the global supply chain and why nations cannot depend on a single country for sourcing life-saving medical devices. The sudden spike in demand for oxygen concentrators has driven up prices dramatically, coupled with a shortage of critical components that has led to low-quality products for end consumers,” mentioned Dr Mukesh Aghi, USISPF CEO.

‘Increase in Prices, Decrease in Quality’

Indian businessmen talking to India Today, on situation of anonymity, mentioned the sudden rise in demand which was unplanned for the manufacturing trade led to an “increase in prices and decrease in quality”.

The improve in price is almost 3 times the precise fee of the product in lots of instances.

(Photo:India Today)

One of the businessmen, serving to within the procurement of those concentrators for NGOs in India, informed India Today that this improve in price is “not due to the increasing cost of raw materials but because of limited supply. Most of the raw material suppliers and factories are making the most of it, leading to many buyers offering higher prices.”

India Today additionally accessed a dialog the place booked orders had been cancelled and the producers quoted a better price for the outdated order.

“Many factories booked orders in April and took initial deposits but did not deliver the products. Just after labour holidays they started to ask for higher prices for the previously booked orders,” mentioned one of many Indian patrons.

The purchaser additional added, “Some companies like Zhengzhou Olive, Shenzhen Hongxinyuan Electronics, Guangzhou Ogwel, Yobekan Shenzhen, Longfian Scitech Co to name a few even doubled and tripled cost of the April orders or refused to give delivery and also delayed refunding the deposits.”

Quality Compromised

There are main high quality points with new provides. According to Indian patrons in China, they’ve rejected many consignments after discovering out that the parts that had been used had been cheaper options to what was initially used.

This may severely compromise the security of individuals whose lives are already at risk in India, defined one of many Indian patrons, and added that there aren’t any high quality checks of the merchandise for the reason that state of affairs is determined.

“But, we are buying way more expensive products for half its quality and the life span will by only a few hundred hours as opposed to a few thousand hours that it originally is meant to be,” mentioned the client.

He defined, “As the demand was not forecast, the main components like medical compressors, molecular sieve, PCBA, outer shell, compressor cooling coils, etc, went out of stock. The assembling factories then started using non-medical grade components in the oxygen generators (as explained in the chart).”

Compressors which might be getting used within the newest orders are below capability and never medical grade. The 10-litre items want 1bar strain which solely a 750 W or 550W compressor can do. But, the brand new items have been put in with regular compressors.

“Both India and Chinese governments should take joint initiative to fight against the pandemic as we are neighbours and have a long history of brotherhood that we must acknowledge. Both must try and control the situation for the benefit of mankind. Joint efforts should be made to stop some people who try to benefit from the pandemic,” Indian businessman Vishal Chada informed India Today from Shenzhen in China

India Lodges Strong Protest

India has lodged a powerful protest with China relating to the “price hike” by Chinese suppliers. Talking to the South China Morning Post, India’s Consul General in Hong Kong, Priyanka Chauhan, took up the matter with the Chinese authorities.

India has demanded China cease the rise within the costs of medical objects. India has expressed hope that amid the surge in coronavirus instances within the nation, China will rein within the price of merchandise to be bought to fight the illness.

Indian diplomat Priyanka Chauhan mentioned, “Our expectation is that the supply chain should remain open and the price of the products should also be stable.”

She added, “Even though there is pressure on supply and demand, there should be stability in the prices of products. The prices of the products should also be forecast.”

Regarding Chinese businessmen, she mentioned, “I have no idea how a lot affect the Chinese authorities can have on this case, but when they’ll do it, it will be welcome.”

Also Read | Outpouring of support from US for India, Covid-19 help touches USD half a billion

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