China continues abiding by the zero-COVID policy, confirming a growing number of lockdowns across the country in response to rising COVID-19 cases. The effort has raised concerns about the impact that could potentially be imposed on the global supply chain.
“We can think of no risk to the global economy, excluding nuclear warfare, that is greater than the risk of a COVID outbreak in China that shutters industrial production,” Carl B. Weinberg of High-Frequency Economics said in a report by the Associated Press. “Uncountable manufacturing supply chains pass through China.”
According to a previous Globe Banner report, the country has increased lockdowns and anti-coronavirus controls at its ports, further driving concerns. Most major cities have now confirmed lockdowns, implemented for the sole purpose of identifying those who are infected.
A member of Shanghai's expert COVID-19 team, Wu Fan confirmed the existence of "large scale" infections throughout the city amid a series of tests, Reuters reported. The findings have triggered a stronger response.
"Containing the large-scale outbreak in our city is very important because, once infected people are put under control, we have blocked transmission," she said, according to Reuters.
Serving as the next major city to be shuttered by mass COVID-19 lockdowns in an attempt to stop the spread of the virus, Shanghai confirmed its closures late Sunday night (March 27). The lockdown serves as the biggest of its kind to ever hit the city, Reuters reports.
"Many wholesale markets are now closed," Bi Yingwu, a 50-year-old stallholder, said, according to Reuters. "Some vendors are reluctant to buy in vegetables. If we cannot get vegetables from wholesalers or the wet market is closed, we are finished."
Reuters reported that the Chinese economy surpassed most economic indicators in January and February of this year, but the regime's response to COVID-19 cases dims the outlook moving forward.
"Indeed, every data point has been rebounding, mainly because policy effects kicked in early this year, with loosening in the infrastructure and property sectors. Catering spending also remained relatively strong," Qu Qing, chief economist at Jianghai Securities, said, as quoted by Reuters.
Wall Street Journal reports that factories are allowed to keep operating for the time being assuming they follow a "closed loop" protocol. That being said, some companies, including Tesla, have suspended manufacturing in the area for a few days.
According to CNBC, a statement made at a top-level government meeting chaired by Chinese President Xi Jinping said, “Officials at all levels must give top priority to epidemic response. Anyone who fails to perform their duties and responsibilities and thus leads to a drastic escalation will be investigated and held to account right away in accordance with discipline and regulations.”