China has been locking down entire populations in pursuit of its "zero-covid" policy, a move that has raised humanitarian and economic concerns. Major companies are now expecting delays as the lockdowns continue, and a recent report shows that a significant number of the Chinese workforce are currently locked down.
"There is clearly already significant disruption to the economy, with more to come before this drama ends,” Ernan Cui, an analyst for Gavekal Dragonomics, a China-focused research firm told clients in a recent note.
Reuters reported April 15 that companies like Apple, Dell, and Lenovo are now facing delays as supply chains become strained under the weight of China's lockdowns. A host of manufacturing facilities relied on by the companies have shut down operations under China's "zero covid" lockdown policy, raising questions of further supply chain disruptions if the companies cannot move orders around.
The Wall Street Journal reported the results of a survey conducted by Nomura that found 45 Chinese cities with a combined 373 million people had implemented either full or partial lockdowns as of Monday. The 45 cities account for more than one quarter of China’s population and roughly 40 percent of the country’s total economic output.
According to Gavekal Dragonomics, a China-focused research firm, excluding Shanghai, account for 12% of the Asian nation's GDP, the Journal reported.
On Twitter. Leonard Nakamura, emeritus economist with the Federal Reserve Bank of Philadelphia, dubbed Chinese efforts "the labors of Sisyphus", taking aim at China's impossible goal of sealing itself off from a disease that is "endemic".