Thanks to the zero-tolerance policy for COVID-19, China regained its 2020 with lockdowns, production stoppages, and mass testing. This is sure to hit not only the economy of the Celestial Empire.
The production of Western companies, despite all the plans to move to India, is still located in major Chinese cities. Foxconn, Apple’s main supplier, is already facing protests – the company has unilaterally cut wages for new workers due to lockdowns. The Tesla plant in Shanghai is also likely to be idle, as are numerous facilities in Guangzhou, Beijing and other cities around the country. There is every chance that the semiconductor crisis will flare up with renewed vigor.
On the other hand, the energy crisis due to the Chinese lockdown is likely to subside. The fact is that China is one of the main consumers of oil in the world. In fact, it was growing on the news of the lifting of restrictions in the Celestial Empire, then production will return to previous volumes. But if the bans are not lifted – oil will not be needed as much. Such news may push the “black gold” down.
And now we can definitely not hope for the CPC plans for GDP growth in the country. What growth when the population is under lock and key?