In China, a sore throat raises fears of trade disruption

The outbreak of Covid-19 in southern China has hampered activity in some of the country’s major ports, raising fears that further disruptions to international trade could push up its export prices.

At the end of May, more than 100 new cases were reported in one of China’s most important manufacturing centers, Guangdong Province, prompting strong government opposition.

Processing at the Shenzhen Yant container terminal, which suspended exports for almost a week last month after receiving positive results from workers, has plummeted. There has also been a sharp decline in the number of cargo ships as the authorities take measures to prevent coronavirus.

The slowdown at the terminal, which has exacerbated congestion in neighboring China’s Nansha Sheku ports, underscores the global vulnerability to outbreaks in the country, where new infections have been low over the past year compared to other large economies.

“It’s about the size of the terminal,” said Lars Michael Jensen of Maersk, an international freight carrier. “This is a terminal that is active in all markets, one of the largest in the world, leading to a wave effect.”

It is also putting pressure on China’s own trade, which has risen in the wake of the epidemic amid growing demand for blockchain products abroad – electronics and home appliances. Exports of surgical China helped support him fast recovery From the initial blow of Covid-19 to the economy.

Official data this week showed that China’s exports rose 27.9 percent year on year in May from a year earlier. But they lost expectations of 32.1 percent growth, according to a study by economists at Bloomberg. Analysts believe that future work could be weakened by the downturn.

“We expect trade data to increase in June,” said Iris Pang, chief economist at ING, China. “This could raise the price of electronics altogether, affect China’s export prices, and finally import prices in the United States and Europe.”

Global freight has come under a number of tensions over the past year, including lack of containers խնդիրներ Problems with crew members unable to land at ports. There are some manufacturers in China They applied to the railway to transport their goods to Europe instead, volumes continue to be a small part of freight.

“Other Chinese ports are also likely to be more cautious,” said Pin Iwe Hang Ang, chief economist at Pinpoint Asset Management. “Due to the epidemic of India տնտես Southeast Asia’s economies, shortages of ships, rising freight costs, this increase in Covid cases in Guangdong may contribute to higher inflationary pressures in other countries.”

Coronavirus business update

How does the coronavirus cause harm from markets, businesses, our daily lives, and our workplaces? Stay tuned for more information on our coronavirus newsletter.

Register here

“I think this is just the beginning. “We may not be as lucky as we were last year,” said Penny Cheng, a Shenzhen-based freight forwarder who said the shipment schedule at the city port was delayed.

Local authorities are extremely sensitive to any increase in incidents, as the central government has severely punished regional officials where Covid-19 has reappeared. All residents of Guangzhou were required to take the test, and all cities in the state prevented people from leaving if they tested negative.

Additional report by Qianer Liu in Shenzhen

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button