The prospect of more Chinese supply logjams because of Covid-19 is heightening fears that the disruptions will ripple through the global economy
Since late December, officials have taken measures to counter Covid-19 outbreaks in several Chinese cities, including the eastern port of Tianjin, Xi’an in central China, and the southern technology hub of Shenzhen. The world’s third-busiest container port of Ningbo-Zhoushan, near Shanghai, risks worsening backlogs from restrictions on trucks and warehouse operations after more than two dozen Covid-19 cases were confirmed in the surrounding area.
, which has been detected in some areas of China. The variant is hitting the country as Beijing seeks to contain outbreaks ahead of the Winter Olympics, which are set to begin on Feb. 4. Several economists said China may escalate its containment policy and some have touted the possibility of a nationwide lockdown, unseen since April 2020. Goldman Sachs on Tuesday cut China’s 2022 growth forecast to 4.3% from 4.8% in light of the latest Covid-19 developments.Photo:said operations on Monday and Tuesday at its joint-venture factory in Tianjin came to a halt because of mass testing requirements imposed across the city.
Mr. Wöllenstein added that in many cases, Chinese authorities have brought local outbreaks under control in a few weeks, allowing businesses to restart operations.
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