Even before the initial problems caused by the pandemic could be solved, the war in Ukraine created new ones. And now, despite all precautions, the Omicron BA mutant of Covid-19 is spreading rapidly in China. The epicenter of infection was the northeastern province of Jilin, on the border with North Korea. On March 14, the entire province was put under lockdown. The economic metropolis of Shenzhen also went into a six-day lockdown on Sunday after a massive surge in Covid cases. Stock prices in China and Hong Kong sank for a second day following the shutdown of the tech and finance hub adjacent to Hong Kong in the south and Changchun in the northeast. Bus service to Shanghai, China’s business capital and biggest city, was suspended.
China’s President Xi Jinping announced the country would stick to its zero-Covid strategy. Still, in a meeting of the country’s top leaders, he also emphasized that pandemic measures should not cause economic pain. If China continues with the zero-Covid strategy – massive lockdowns to contain outbreaks – China’s economy will suffer, as would the global community. Many suppliers are already warning that the radical closures and lockdowns of production facilities will negatively impact business activity – on top of the existing issues. For example, zipper manufacturer YKK reportedly already had to close its factory, and others will follow. Further delivery delays can no longer be ruled out. The BBC reports that the number of ships waiting at some Chinese ports has already increased massively. But the problem also exists on the other side: The port of Rotterdam, for example, is currently completely congested due to the transport embargoes imposed following the Russian attack on Ukraine, and summer season products stuck there are likely to arrive at their destinations one to two months late.
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