Shanghai has been placed on lockdown as the country continues to follow its covid zero policy. Shanghai is home to the country’s largest seaports which aren’t operating as the city’s 25 million residents are ordered to stay at home, which is predicted to create further supply issues globally.
Australian Industry Group CEO Innes Willox said, “What the Shanghai lockdown will do is make it even harder for businesses to get parts and import components.”
“Further disruption will mean everything from high tech defence equipment right down to even the most basic items you might buy at your local grocery store could be impacted.”
Related China: No Chinese tourist, the $12B hole in Australian tourism
Related Business Resources: Yes!, The hospitality venue that bucked the trend
from Adelaide now 9.4.22
China’s complete lockdown of the Covid-ravaged city of Shanghai will cut supply chains, impacting almost all Australian businesses., experts have warned.
Shanghai has the country’s largest seaports, but it sits idle as authorities have ordered the city’s 25 million-plus residents to stay at home.
The lockdown is part of the Chinese Government’s Covid-zero policy, and an attempt to curb rising cases of the Omicron variant in the city.
Workers wearing personal protective equipment transfer daily food supplies and necessities for local residents during the Covid-19 lockdown in Shanghai. Picture: AFP/China OUT
Australian Industry Group CEO Innes Willox has told media the lockdown will put pressure on Australian supply chains across almost every sector of business.
“There had been a marginal improvement over the past few months getting products shipped, as things eased from the worst of the Covid disruptions,” he said.
“What the Shanghai lockdown will do is make it even harder for businesses to get parts and import components.”
Mr Willox said Australia was still very reliant on China for a large number of goods and could expect problems relating to ports, pallets, containers and trucks.
“Further disruption will mean everything from high tech defence equipment right down to even the most basic items you might buy at your local grocery store could be impacted,” he said.