With all eyes on Ukraine, it’s worth reminding ourselves that Covid — and the policy response to Covid — continues to disrupt the world.
There’s no better proof of that right now than the lockdown in Shanghai. The Chinese city is, by some definitions, the world’s biggest. It is also has the world’s most important container port — a focal point for supply chains spanning the globe.
The impact of the lockdown can be seen in the following VesselsValue chart, tweeted out by Andreas Steno Larsen:
Show the economic consequence of Zero Covid in one chart
Hold my beer pic.twitter.com/6t9BlNzsqY
— Andreas Steno Larsen (@AndreasSteno) April 5, 2022
Over a twelve-month period it shows the number of ships waiting to load or discharge at Shanghai. The blue and red lines allow us to compare 2021 to what’s happening this year. Against the long-term average (shown in black), we can see clear signs of disruption starting in August last year — which is when supply chain bottlenecks started to develop at container ports across the world. But while that was bad enough, the current situation is much worse.
Depending on how long the lockdown lasts in Shanghai and other Chinese cities, there will be knock-on impacts on the global economy. However, the effects are complicated. Though any restriction to the supply of Chinese exports will push up inflation in the West, the continuing lockdowns are constraining Chinese demand for oil and gas imports — helping to limit the surge in global energy prices. It’s too early to tell how these factors will balance out over time.
What we can see clearly, however, are the limitations of China’s “Zero Covid” policy. With Europe learning to live with Covid, the Chinese approach — which once drew grudging admiration — now doesn’t look so effective.
Join the discussion
Join like minded readers that support our journalism by becoming a paid subscriber
To join the discussion in the comments, become a paid subscriber.
Join like minded readers that support our journalism, read unlimited articles and enjoy other subscriber-only benefits.
SubscribeIf the UK government tries anything like this ever again, we must resist tooth and nail.
They even think a case can be made for locking down in this article.
“a test of the state’s ability to control its people’s behaviour”
That’s the really interesting question for me. I understand that China is an authoritarian state and, based on my limited knowledge of Chinese history, always has been to some extent. But surely even authoritarian states have their limits.
I would love to read an article written by a Chinese journalist describing the people’s attitude to these lockdowns. Is there any possibility of meaningful opposition to the CCP? It’s hard to believe China can allow its population to live an increasingly Western lifestyle without a hint of Western individualism and suspicion of government creeping in. China isn’t North Korea.
The Zero Covid = Zero Freedom is I’m sure a happy coincidence for the CCP.