China again moved into a lockdown and the key port cities like Shenzhen and Dalian were forced to close due to mass testing at the important maritime hubs including Tianjin. China’s zero Covid policy has disrupted the global supply chain. The spokesperson mentioned that markets could once again be hit in the next couple of weeks and might suffer another round of cuts by economists on the streets and the situation is deteriorating.
As per the survey by the EU Chamber of Commerce, loads of European companies in china are looking to shift their investment out of the country due to the country’s stringent covid policies, and similar concerns are reiterated in other reports from British and American Chambers of Commerce.
Even though Beijing has taken the reports seriously and provided some ease to the rules, still the big brands are looking for alternative manufacturing sites outside of china.