China's 'witless' Zero-COVID rules to impact global inflation
May 10, 2022
Beijing [China], May 10 : China's infamous Zero-COVID policy is not only harming the Chinese citizens but is also posing a significant threat to the world as the country's 'witless' rules have left hundreds of cargo ships stranded on the ports which will impact freight costs and global inflation.
Maersk, the world's second-largest shipping company, has suggested that the lockdown will severely impact truck services and transport costs would perceive a rise at an unexpected level. It is said that 90% of the world's goods are carried oversea.
As freight charges increase it could cause a negative economic spillover on global trade. Businesses will not tolerate this unfortunate development and they will divert the cost on customers, reported Inside Over.
Due to heavy traffic restrictions at the Shanghai port logistics companies have advised vessel operators to offload the products at other ports.
Ultimately customers have to bear the additional shipment and storage charges. Thus China is going through its worst outbreak and therefore the increase in freight charges could create economic repercussions on global trade as well.
If the delays continue for an unexpected period, other ports may not be capable of filling the void. Some of the factories are finding it challenging to keep the momentum going due to the high COVID curbs.
Many companies are bearing the brunt of China's stern COVID policies. a lockdown is declared in Changchun city which is a major auto manufacturing hub for brands like Toyota and Volkswagen. Apple supplier Foxconn has also suspended its production amidst the tightened restrictions, as per the media outlet.
Global inflation and the closing down of businesses are looming threats however Chinese citizens are already witnessing the worst. As the world is going back to normal, hopes for China are bleak as there is a tremendous rise of new COVID cases in the country caused by the omicron variant.
Leaked social media videos have also exposed the harsh reality of China's infamous Zero-COVID policy. Two viral videos have raised eyebrows across the globe. The videos draw extreme criticism from across the globe.
One of the viral videos is from Shanghai where people are seen screaming from their balconies at home. Shanghai, the financial capital of the country has reported over 20,000 cases per day.
Other video records healthcare workers violently beating people pursuant to quarantine rules. Regardless of symptoms, the policy is based on putting everyone locked in their home.
