Covid-19 in China: how the mind-blowing situation raises fears of industrial shortages

Sébastien Le Belzic (in Beijing), edited by Gauthier Delomez 10:35 a.m., April 27, 2022, modified at 10:35 a.m., April 27, 2022

REPORT

The situation is mind-boggling in China.

Due to the resumption of Covid-19 contaminations, the capital, Beijing, is on high alert and risks confinement, like Shanghai, where the population is gradually revolting against the restrictions.

Rations that also slow down the country's economic activity, and with them, global supply chains.

Off the megalopolis in the east of the country, nearly 500 container ships are waiting to moor.

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Workers forced to sleep on site to work

This maritime traffic jam is linked to the lack of dockers, and it is a logistical headache.

Confined for a month, Shanghai is cut off from the world.

"It's called a total mess, that's what's happening," says the head of a multinational based in the city at the microphone of Europe 1. "There are cargo ports that leave neither enter, nor leave the trucks to unload the containers," she explains.

When it's not the logistics that are seized up, it's the factories that are blocking.

In total, only 600 strategic companies have been authorized to return to work this week, but with only 50% of workers having to sleep on site.

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A situation that raises fears of shortages in Europe

For Europe, China's largest trading partner, this nightmarish situation raises fears of shortages.

One in two containers comes from China, so the delays are starting to weigh down, especially on the automotive industry, which is short of spare parts and semiconductors.

This problem is likely to get worse.

After Shanghai, Beijing is threatened with closure.

In total, the equivalent of 40% of Chinese GDP is affected.