A new wave of Covid-19 has crossed China. Unlike in the West, the Beijing government’s line seems clear: the emergency will only end when there are 0 cases of Covid 19.

In Shanghai, for example, 25 million people have been confined to their homes since the end of March in an attempt to stem the Covid outbreak. In doing so, in addition to achieving the health goal of eradicating infections, China is putting a strain on national logistical networks and dealing a blow to manufacturing, construction and service sector activities.

These ongoing local and national shutdowns cause severe delays in the logistics chain, creating a domino effect on the global economy. Shanghai was paralysed by the strict measures imposed by Beijing, which caused the closure of one of the world’s busiest container ports. As contagions increased, the central government also imposed strict rules on truck drivers entering the city to supply shops and factories with goods collected from the country’s seaports.

This has increased costs and made the transport of goods in and out of the city less efficient.

Photos of the city of Shanghai show long lines of container ships waiting to unload goods.

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