According to related media reports on August 19th, more than two years after the Chinese Communist Party (CCP) adopted the zero covid policy, the policy not only dragged down its economy, but also brought the global supply chain to a standstill. Simon Geale, executive vice president of procurement at Proxima, said supply chains depend on predictability. But from the current situation in Communist China, it is unpredictable.
Stephen Morrison, the senior vice president at the Center for Strategic and International Studies (CSIS), said that China’s zero policy has become one of the main drivers of the global recession.
In manufacturing, some companies are forced to operate within a closed-loop system akin to a ‘bubble’. Companies like Tesla, the iPhone maker, and Foxconn have had to implement closed-loop systems.
Requirements for testing workers and transport drivers have hampered production and delayed the time it takes for goods to reach Chinese ports after the Shanghai and Beijing regions dealt with a wave of infections sparked by Omicron. Severe weather, labor challenges and unusual demand patterns have also contributed to supply chain disruptions.
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