Have you noticed what’s going on in China? There are almost 400 million people currently under lockdown restrictions because of the strict zero-Covid policy there. 45 cities across the country are affected, and the economic impact of what is going on could be staggering.
Consider this; according to a CNN report, $7.2 trillion and 40% of China’s growth domestic product are affected by this lockdown.
Shanghai is a city of 25 million and a top manufacturing and export hub, and that megalopolis is locked down and has been for weeks. It has led to food shortages and trouble for citizens to reach health care facilities. The port in Shanghai handled 20% of the freight traffic in China last year, and it is essentially closed to business right now. Food that should be on sea in refrigerated compartments is rotting.
Cargo coming in is stuck for an average of eight days before they are unloaded. 90% of the trucks that should be moving the cargo are at a standstill.
Apple has a massive presence in Shanghai, so does Sony, and their factories are shut down. Tesla has their Shanghai Giga factory, which usually produces 2,000 electric cars per day, and now they are producing 0. The company has missed out on the production of 50,000 vehicles because of the lockdown.
According to the Chinese University of Hong Kong, China’s lockdowns will cost $46 billion per month in lost economic output.
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