Have you noticed that your favorite products are missing from store shelves longer? Or more often than usual? A new wave of lockdowns is underway in China. These lockdowns could create logistics snarls bigger than those of 2020 and 2021. In recent weeks, China has been fighting its most severe outbreak of the airborne virus. Thus, many goods are stuck in the country. (source)
The supply chain shortages could become a "big problem" for the world economy. Richard Martin is a business consultant and managing director at IMA Asia. Martin said, "China is 20% of global demand but its role in supply chains is much bigger than that. Many of the things that we use around the world that are manufactured, have components from China and we’re about to see a logistics snarl that’ll dwarf anything in 2020 or 2021." (source)
During the pandemic, the global economy has grappled with supply chain bottlenecks. The Russia-Ukraine war, which began in February, has led to further concerns. Now, there are new outbreaks and shutdowns in China. (source)
Martin said, “The problem, Beijing has got it right across the country — not just Shanghai but down in the south in Guangzhou and of course, up in Jilin where there’s been a lot of manufacturing.”.
China has adopted a strict zero-virus policy. Now, in parts of China, officials are closing down entire cities. This approach is causing supply disruptions at a fast rate. (source)
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*Disclaimer: This article is for general knowledge and informational purposes only*