Sébastien Le Belzic (in Beijing), edited by Gauthier Delomez April 27, 2022 10:35 am, modified April 27, 2022 10:45 am
Health restrictions in China due to Covid-19 are drastically slowing down the country’s economic activity. While Beijing is on high alert, the metropolis of Shanghai is cut off from the world and its port activities are severely restricted. A striking situation that could lead to bottlenecks in Europe.
The situation in China is confusing. Due to the resumption of Covid-19 contamination, the capital Beijing is on high alert and at risk of containment, as is Shanghai, where the population is beginning to rebel against the restrictions. Rations that also slow down the country’s economic activity and thus the global supply chains. Almost 500 container ships are waiting to moor in front of the metropolis in the east of the country.
Workers had to sleep on site to work
This sea congestion is related to the shortage of longshoremen and creates a logistical headache. Locked up for a month, Shanghai is cut off from the world. “It’s called a total mess that’s happening,” says the head of a city-based multinational at the Europe 1 microphone. “There are cargo ports that don’t come in, nor do the trucks leave to unload the containers,” she says explained.
Unless the logistics are blocked, it is the factories that are blocked. In all, only 600 strategic companies have been given permission to resume work this week, yet only 50% of on-site workers are required to sleep.
A situation that gives rise to fears of bottlenecks in Europe
For Europe, China’s largest trading partner, this nightmare situation is fueling bottlenecks. Every second container comes from China, so the delays are beginning to affect the automotive industry in particular, which lacks spare parts and semiconductors.
This problem is likely to get worse. After Shanghai, Beijing is threatened with closure. In total, 40% of China’s GDP is affected.