A lockdown imposed only in one Chinese province may drastically affect the global economy. The coronavirus outbreak in Zhejiang forced the local authorities to close dozens of enterprises, which had to stop any activity.
According to the official data, at least 20 companies, whose stocks are traded at exchanges, suspended operations because of safety concerns. In fact, the number of such companies is much bigger. In addition, thousands of people had to stay at home, whereas some domestic flights were canceled. All this has a negative influence on exports and the operation of ports. For example, the service disruption at the Ningbo port, the largest one in China, may cause a lot of difficulties in the global supply chain. Notably, Zhejiang accounts for about 6% of the country’s GDP. That is why restrictive measures in China’s ports threaten both the local business and global economy. Thus, the quarantine is expected to exacerbate the problem with sea transportation.
In early December, China announced a large coronavirus outbreak. Most cases were recorded in the Hulunbuir region bordering Mongolia and Russia. Since the beginning of the pandemic, 98,824 people have caught the virus.
