05 May What will now have a big effect on our economy
What will now have a big effect on our economy
There is an issue that no one is taking about. That is China and it’s strict Covid policy. What has happened?
China has done a wonderful job of isolating Covid outbreaks. The bad news is that they have not vaccinated everyone, have little or no herd immunity and it is only a matter of time that they will have another major outbreak with a population size in the billions. That time is now…they have nearly 400 million people across 45 cities that are under full or partial lockdown as part of China’s zero-Covid policy. Those forty-five cities represent 40 percent of China’s gross national product. That is $7.2 trillion. The global fallout from this will be felt everywhere…even here in Minnesota.
Most alarming is the indefinite lockdown in Shanghai. It is a city of twenty-five million and the port of Shanghai is the largest port in the world and manages 20 percent of all Chinese freight. Currently food supplies stuck on shipping containers is rotting.
In addition, cargo airlines have canceled all fights in and out of Shanghai and more than 90 percent of trucks supporting import and export deliveries are out of action. These problems will affect American and world companies like Apple, Sony, and Tesla.
Also effecting China is it is political and economic support of Russia in the face of their criminal invasion of Ukraine. The western countries who have invested in China are reconsidering their current level of dependence and future investment.
The world economies are intertwined, and this will affect our economy, companies in the US and the world economy.
I hope you found my blog on “what will now have a big effect on our economy.” helpful.
Just call, text, or email me with questions.
The Anderson Team