Shanghai Blockade Further Hits Global Supply Chain

On April 8, multiple media reported that due to the CCP’s strict epidemic Zero-Cases Policy in Shanghai, various control measures are gradually causing damage to the domestic supply chain, raising concerns about the impact on the global supply chain.

Several companies say the ongoing lockdown has forced them to halt production operations and slow down the development of new projects. And those that are still operating are facing a shortage of truck drivers, in addition to cumbersome permit applications and virus testing requirements. At the Shanghai port, the lack of drivers and other workers has made it increasingly difficult to get goods in and out. Xu Beidi (BettinaSchoen-Behanzin), chairman of the Shanghai branch of the European Union Chamber of Commerce and vice-chairman of the chamber of commerce, said in an interview that the weekly throughput of Shanghai Port has dropped by 40% compared to the past.

The shortage of materials caused by the slowdown or even stagnation of logistics is hurting the domestic consumer economy severely. Online shopping platforms such as Taobao are facing delivery delays. At the same time, Shanghai is the world’s No. 1 container port and a key hub for the global supply chain. It is also an important gateway for China’s foreign trade, handling about 17% of the total throughput of Chinese ports. If the lockdown continues, it will soon have negative impact around the world.