Sunday , 2 October 2022

Email From China: COVID-19 Lockdown In Shanghai China Further Exacerbating Supply Chain Issues Around the World

“The proverbial…has hit the fan here and it is going to result in reduced shipments out of China, further exacerbating supply chain issues around the world. In addition, the economic and social impact on China’s population is becoming severe. Here is what has been happening here for the past few days.”

This dispatch from the front lines is an email the editor of received just today from his Canadian business partner working out of their office/plant in China. In his previous email (see here) his opening line was “China is treading a thin line between controlling infections and a break-out. If the latter happens the proverbial…will hit the fan here!”. His first words in today’s email were “The proverbial…HAS hit the fan here!” going on to say in edited words and format:

ALL of Shanghai Is Now In Lockdown

“Shanghai entered lockdown as planned. The plan was for the closure of both the eastern and western halves of the city closing down for 5 days each, to run consecutively, during which all inhabitants in the respective parts of the city were to be tested for COVID.

    • The eastern part of the city was supposed to re-open on April 1, but remains closed until at least April 7 and quite probably longer.
    • The western half of Shanghai went into lockdown on April 1, as planned, and was supposed to re-open this morning, but word is that it will remain closed.
    • As things stand now all of Shanghai is on lockdown as they retest all 26 million inhabitants.

With retesting underway no one is allowed to leave their residential compound (neighbourhood) and, as a result, food delivery services are starting to breakdown under stringent testing rules and severe workloads.

Vaccination Rate Among Elderly Only At 50%

There are some pretty ugly stories coming out of Shanghai from nursing homes.

  • The vaccination rate in China among those in the 80+ age group is only sitting around 50%.
  • When the outbreak hit Hong Kong in February they had the highest rate of death from COVID in the world – and it turns out Hong Kong was a microcosm for mainland China.

They are trying to fix that and reports are that last week they were doing around 4 million vaccinations a day in total new vaccinations with the elderly being the key target group.

In other provinces the story is similar with at least 4 other major cities currently on lockdown and in dozens of smaller cities, towns and villages around the country.

  • Some cities requires a minimum of 3 days quarantine and 2 PCR tests upon return before you can get a green health code again and return to your place of work or even go into a grocery store.
    • The green health code is based on a track and trace APP on everyone’s phone here and monitors location etc.
  • I have now had 5 COVID tests in the past 2 weeks!

China May Be Abandoning its Zero-COVID Policy

We will have to wait and see how long the government sticks to its zero-COVID policy. They have recently signed supply deals with Pfizer and Moderna for mRNA vaccines and COVID treatment medications and that would suggest preparation are being made to abandon the zero-COVID policy to alleviate the severe economic and social impact such a policy with its widespread lockdowns are having.

The Port of Shanghai last week was operating at about 70% capacity and that will likely only get worse this week with the total lockdown of the entire city and that will result in reduced shipments out of China, further exacerbating supply chain issues around the world.

Related Article

1. Zero COVID Horror Show in Shanghai

The Chinese Communist Party (CCP) has implemented harsh COVID-19 restrictions in Shanghai, sending an army of healthcare workers to enforce them. Citizens cannot leave their homes. They can only receive medical care upon presenting a negative COVID test. Healthcare workers are forcing COVID-positive individuals into quarantine camps and stripping children from their parents. Government officials are even executing pets in the street when the pet owners test positive for COVID. People are running out of foodscreaming from their windows, and jumping out of buildings in protest.

2. Email From China On COVID-19 Lockdown There (March 24th)

The next few weeks in China should be interesting: if a COVID-19 break-out occurs in mainland China like it already has in Hong Kong the effect could be catastrophic!

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