Covid Continues to Disrupt China Production

Many cities in China are continuing to be impacted by varying levels of lockdowns, which is disrupting the production of the world’s second largest economy.

Last week, the 21.5 million citizens in Chengdu went into full lockdown, which is the biggest of its kind since Shanghai’s eight week closure in June.

Reports suggest that 33 Chinese cities are now under China’s lowest tier of lockdown, which impacts an estimated 65 million residents.

This includes the major cities of Shenzhen, Guangzhou, Dalian and Tianjin, which have varying levels of restrictions currently placed upon them. In Shenzhen, most of the 18 million population are subject to some form of covid control.

The number of cases remain small by our standards but China has continued to operate a zero tolerance approach to outbreaks, which many believe is now harming their export production.