In spite of the ongoing controls, the country’s economy is still suffering and global supply chains are stalled.
CNBC interviewed Steve Morrison, senior vice president at the Center for Strategic and International Studies, who said Zero-Covid has become one of the select drivers of the global recession.
China and Shanghai require negative Covid tests for entry into public areas.
After waves of omicron-driven infections, major trade hubs such as Shanghai and Beijing require workers to have negative Covid tests to enter public spaces.
Also, the demanding quarantine and testing rules have slowed down truckers on the road, increasing the time it takes for goods to reach Chinese ports.
Manufacturing in China has been forced into a closed-loop system, similar to the “bubble” strategy, where factory workers live on-site.
Tesla and Foxconn, a manufacturer of iPhones, have implemented closed-loop systems.
Furthermore, poor weather, labor challenges, and abnormal demand patterns have also disrupted supply chains.
In an interview with CNBC, Simon Geale, executive vice president of procurement at Proxima, said supply chains thrive on predictability. “And for many businesses, China is predictably unpredictable at the moment.”
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