Risk of disruption of the global supply chain

The reason is that the current COVID-19 outbreak in mainland China is considered the most severe in more than 2 years. At least 13 cities and counties in China have been locked down to varying degrees.

In Shanghai, a city of 25 million people, many downtown areas are deserted. Many businesses and shops are closed because of the local blockade.

The economic centers of Jiangsu, Zhejiang, and Tianjin, where international seaports are concentrated, and giant processing factories that export goods to around the world, are all affected by the epidemic. Industrial parks and seaports are strictly controlled.

As the technology hub of China, Shenzhen is now officially closed, banning people from entering the city. (Image: Getty Images)

Particularly in Shenzhen city, 17 million people, the center of technology and manufacturing was locked down. Foxconn – an outsourcing manufacturer for Apple, has stopped working in Shenzhen. Chip supplier Xinxing Electronics of Intel closes factory. Volkswagen Group (Germany) closed in Jilin province.

The strict blockade in Shenzhen, along with a serious epidemic in Hong Kong (China) affected the operation of international ports exporting goods around the world.

Chinese economic experts believe that this new epidemic will have a significant impact on the economy in the short term as well as cause serious problems. supply chain Global commodities are affected. With the Zero COVID-19 policy, the country has been almost closed to the world for 2 years now.

Many international organizations have lowered China’s GDP growth rate in 2022 due to strong measures to block the epidemic. However, health officials in this country continue to tighten measures to combat the epidemic because the disease is spreading rapidly.

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