New COVID-19 lockdown in China could worsen supply chain issues, experts say 

Experts say many industries could face further supply chain disruptions if China imposes widespread lockdown measures to curb the spread of the omicron variant, The New York Times reported Jan. 16. 

"Will the Chinese be able to control it or not I think is a really important question," Craig Allen, the president of the U.S.-China Business Council, told the Times. "If they’re going to have to begin closing down port cities, you’re going to have additional supply chain disruptions."

Four of China’s largest port cities — Shanghai, Dalian, Tianjin and Shenzhen — have imposed smaller-scale lockdowns to try to control outbreaks of the omicron variant. The Times reported that as of this weekend, they had not closed their docks. 

The effects of potential widespread lockdowns in China could be felt in the U.S., experts say.  Global supply chain issues have already caused transportation prices to increase and left products piled up at ports.

"If one of the big container terminals goes into lockdown, it doesn’t take long for a big backlog to develop," Tim Huxley, the chairman of Mandarin Shipping, a Hong Kong-based container shipping line, told the Times

 

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