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China Supply Chain Feels The Pressure: Chart of The Day

China export prices have spiked as harsh Covid lockdowns have shut down entire cities and regions


Containers at the Yangshan Deep Water Port in Shanghai
The impact of China's Covid lockdowns is feeding into its export prices.

 

China’s zero-Covid strategy and strict lockdown restrictions are taking their toll on the globe’s biggest exporter.

In the chart below, we can see how pressure on the supply chain caused by Covid lockdowns in China’s biggest industrial centres and the interruptions to production are feeding into export prices.

And from a global macro view, the developments in China could cause even more economic damage than the war in Ukraine.

The Chinese economy is substantially larger than all of Eastern Europe’s economies combined, including Russia and Ukraine. A major slowdown or even a bursting real estate bubble would be a blow to global growth.

 

China export prices spike as Covid lockdowns shut down cities

  • By Sean O’Meara & Richa Gandhi

 

Read more:

China’s Data Law Blurs True Shanghai Trade Picture

Chinese Yuan Slips to One-Year Lows, Extending Losses

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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