the zero Covid strategy proves disastrous for the economy

It’s chaos in China, especially on the roads, like in Zhengzhou. The inhabitants of this city of 10 million inhabitants have just learned that they will be confined and rushed to the supermarkets. Which created the panic. In Shanghai, the roads are still deserted and the inhabitants cloistered. The city’s economy is at a standstill. No local shops, shopping centers and restaurants are open. Consumption and services are down. Only so-called essential businesses are working again. In the Hua Hang company, which manufactures semiconductors, employees work and sleep… on site.

“The global demand for electronic chips is exploding. We must do what is necessary to continue to produce enough chips and to ensure that our subcontractors are not out of stock”, says Wei Zhengying, director of Hua Han Semiconductors. The impact of the zero-Covid strategy is worrying for the country’s economy. All supply chains are blocked and ports are operating in slow motion.