COVID-19: Chinese lockdowns affect global supply chains

Due to rising COVID-19 infections in China and the enforcement of the Zero-Covid policy by Xi Jinping, global supply chains have taken a hit as Shanghai is the main export centre of China.

In 2021, the port handled 20 per cent of China's freight traffic, local media reported.

As a result of the lockdown, many companies were forced to shut down their factories. For example, a lockdown is declared in Changchun city which is a major auto manufacturing hub for brands like Toyota and Volkswagen.

Chen Xin, who owns a garment painting factory in Guandong province said that he is unable to deliver most of his orders due to the logistics crisis. In his opinion, the impact of Chinese government policies is much greater than the problems caused by pandemics.

If the lockdown continues prominent economists have warned of bigger impacts on the global supply chain, he added.

China's zero covid policy has given rise to global consequences since most of the manufacturing hubs for international brands are located in China.

The government has adopted a zero-tolerance policy toward businesses, and citizens. No matter whether you are contributing to the GDP or not, the arbitrary irrational decisions of authorities prevail, media outlet Inside Over reported.

The report further stated that logistics companies have advised vessel operators to offload the products at other ports due to heavy traffic restrictions at the Shanghai port.

Ultimately customers have to bear the additional shipment and storage charges. Thus China is going through its worst outbreak which will impact freight costs and global inflation. More than the pandemic it is the bad decisions of the Chinese government to be blamed.

Some analysts think that now it could be time for nations to reduce their dependence on China for smartphones and other products if these are the risks.

Moreover, Chinese lockdowns have also affected truck drivers as they play a crucial role in the Chinese economy. You cannot have production in the factories without any resources. Major shipping requirements are transported via these people. They deliver required electronic items, raw materials...etc to the factories and transport goods back to the ports but

Owing to the lockdown their hardships are at worst a nightmare which was unexpected as China restrict trucks from Shanghai before entering their town.

China is reporting the highest coronavirus outbreak in the last two years with over 1,400 new coronavirus cases per day and the Chinese authorities are struggling to deal with the deteriorating situation. The crisis has raised public distrust in the authorities and anger at the government.

( With inputs from ANI )

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