Sinking oil prices, factory shutdowns, and logistics nightmares: The global effects of Shanghai’s lockdown
Shanghai authorities began a snap lockdown of the city’s 26 million residents late on Sunday after mass testing found “large-scale” COVID-19 infections throughout the financial hub.
The two-stage lockdown will split Shanghai along the Huangpu River for nine days to allow for “staggered” testing by healthcare workers.
Residents on the eastern side of Shanghai have already been confined to their homes as public transportation, including ride-hailing services, have been halted, while many firms and factories have suspended manufacturing or are working remotely. Across the river, residents are scrambling to secure supplies for the upcoming lockdown in a scene that has become increasingly common under China’s Zero-COVID policy.
Cities including Shenzhen, Dongguan, Changchun, and Shenyang have already faced strict, but short-lived lockdowns in China’s ongoing battle against rising Omicron cases. And more lockdowns could be possible moving forward, as authorities seem intent on maintaining strict restrictions in the country.
“China is unlikely to give up on its Zero Covid policy in the near term, despite challenges from the large Omicron wave,” Bank of America analysts wrote in a note to clients on Monday.