![]() “The Chinese economy’s sheer size and its importance to global supply chains together imply that China’s zero-COVID policy is having ripple effects that touch every corner of the global economy,” he tells TIME. A survey by Savanta ComRes revealed that 45 per cent of adults would be in favour of a selective lockdown targeting only those who had declined to get their Covid jabs and therefore could pose an. In a report released this month, the IMF also said “Recent lockdowns in key manufacturing and trade hubs in China will likely compound supply disruptions elsewhere,” potentially adding to inflationary pressures.Īt Cornell, Prasad agrees. President Joe Biden said Friday the US will, in all probability, see more guidelines and restrictions amid rising coronavirus cases and the spread of the highly contagious Delta variant. in the coming months: “Notably electronics, home appliances, and also apparel and garments to some extent.” However, Wu the economist cautions that there will likely be supply shortages of some consumer goods in the U.S. He Xiaopeng, CEO of Electric vehicle company Xpeng, underscored the warning, saying that Chinese automakers may have to halt production in May.ĭavid Dollar, a senior fellow at the Brookings Institution, says that while specific sectors such as autos will suffer, the hit to the global growth rate should not be too severe.Īs for inflation, “some specific products will continue to have price spikes,” he says, but “American consumers can look forward to inflation gradually tapering as the Fed tightens monetary policy.” “That will pose severe consequences and massive losses for the whole industry.” “If Shanghai cannot resume production by May, all of the tech and industrial players who have supply chains in the area will come to a complete halt, especially the automotive industry,” he said in a WeChat post. ![]() Read More: China’s Deepening Showdown With COVID-19 Richard Yu, a top Huawei executive, warned last week that China’s zero-COVID policy might trigger “massive losses” and hit the global supply chain. Those same restrictions, he adds, are now “also affecting the country’s industrial production and export activity, which will amplify the ongoing global supply disruptions.” “China’s COVID restrictions are weighing heavily on its domestic demand, which has already been weak even before the recent Omicron outbreaks and lockdowns,” says Tommy Wu, a lead economist from Oxford Economics based in Hong Kong. The unemployment rate across 31 major Chinese cities also rose from 5.4% in February to 6% in March-the highest on record, according to official data going back to 2018. He said the country offered “powerful momentum” for recovery from COVID-19 and minimized concerns about the economic impact of the extensive lockdowns, calling for better coordination between major economies to prevent “severe and negative” spillover effects.īut China’s Premier Li Keqiang has issued several warnings about the risks to economic growth in recent weeks. In an April 21 speech, President Xi Jinping emphasized the resilience of China’s economy.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |