Supply-Chain Troubles Resurface in China

This week’s two-phase lockdown of Shanghai may lead to further shipping and production delays.

The country’s Omicron lockdowns could spell further disruptions

By Alan Wolf, YSN

If you thought we were finally starting to see the end of COVID-related supply chain disruptions, think again.

According to a report in The Wall Street Journal, exporters are bracing for further shipping and production delays following China’s two-stage lockdown this week of Shanghai, the country’s most populous city, amid an outbreak of the Omicron variant.

The lockdown follows similar actions, including factory closures, earlier this month across large swaths of the country, including the manufacturing hubs of Shenzhen and Changchun, the newspaper noted.

Throughout the pandemic China’s zero-tolerance policy has impacted ports, warehouses, workers, and transportation systems, contributing to inventory backlogs and spiraling prices across scores of industries.

Although the country has been getting better at keeping its factories and transportation facilities open amid the restrictions, the world economy is still feeling the fallout from the on-again, off-again lockdowns.

“China is getting better at managing the shocks, but the shocks are getting bigger,” Hui Shan, Goldman Sachs’ chief China economist, told the Journal.

Click here for the complete WSJ report.

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