China lockdowns continue supply chain chaos

By Scoop
April 21, 2022 · less than 3 min read

Currently, one in ten items remains stuck in Chinese ports.  

Covid congestion 

The last two years have taught us many things. One of those things: what happens in China, doesn’t stay in China. And now, more than two years on, the domino effect of a locked-down Chinese economy continues to wreak havoc in global trade.  

The country remains staunchly committed to its ‘zero-Covid’ policy, which in theory is an honorable move. But with the milder Omicron variant doing the rounds, some are calling for restrictions to loosen – not least because they are grinding global trade to a halt.  

The shutdown showdown 

According to Reuters, at least 373 million people have been affected by the most recent wave of lockdowns across China. A lot of people – but it’s also the workforce powering cities that contribute up to 40% of China’s GDP. And if they’re all locked down, so too is the economy.   

The ongoing debacle mirrors scenes in Shanghai. Home to the world’s largest port and a vital center of finance to China, the city is one of the primary causes of supply chain issues, with almost 500 ships stuck outside the port earlier this week.  

As tensions reach a climax in locked-down Chinese cities, those willing to maintain the strict lockdown regulations are far outnumbered by disgruntled residents and concerned economists.  

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