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How China’s Covid-zero approach is intensifying supply-chain ...

World

How China’s Covid-zero approach is intensifying supply-chain chaos

The crisis is expected to worsen as the impact on companies and consumers starts to ripple across the globe

Ann Koh and Augusta Saraiva

The economic consequences from China’s Covid-19 lockdowns are being felt by companies and consumers across the globe, and expectations are that the reverberations will only strengthen.

Supplies of Adidas sneakers and Bang & Olufsen speakers have been hit. Automakers from Toyota to Tesla are facing “unprecedented” costs and production hurdles. Sony is struggling to make enough PlayStations. 

While “supply-chain disruption” is emerging once more as the most repeated phrase of corporate earnings season, the impact goes beyond multinationals’ profits. Hospitals from the US to Australia are wrestling with a shortage of chemicals used in X-rays, while building projects are being held up by delayed materials. ..

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