Posted on 03/15/2022 6:01:45 AM PDT by blam
Lockdown in Chinese manufacturing hubs Shenzhen and Changchun threatens to worsen inflation in the U.S. and to disrupt global supply chains.
The U.S. imported nearly $48 billion of goods from China in January, the latest month for which data is available. Last year, imports of Chinese goods totaled $506 billion, the second-highest level of imports from China on record.
The Chinese government has placed the city of Shenzhen on lockdown for at least a week and ordered everyone in the city to undergo three rounds of covid tests.
The lockdown has halted many manufacturing operations in Shenzhen, including those of Foxconn, a crucial assembler of Apple’s iPhones.
Shenzhen’s exports of goods reached 1.92 trillion yuan, the equivalent of around $302 billion in 2021, according to official Chinese figures. Electronics and telecommunications equipment reportedly account for over 90 percent of the total output of Shenzhen’s high-tech industries. Huawei Technologies and electric-vehicle maker BYD , which produces electric cars and batteries, are located in Shenzhen.
Huawei has reportedly been allowed to remain open.
The cost of U.S. consumer goods less energy and food jumped one percent in January and 0.4 percent in February, for a year-over-year increase of 12.3 percent. The sudden halt of production in Shenzhen threatens to amplify inflationary pressures in the U.S.
While a brief lockdown would likely not cause major disruptions, a lengthy shutdown of Shenzhen manufacturing could become a major snag for global production of autos, semiconductors, and telecommunications equipment.
Damn. Shenzhen locked down. 17 million people and major supply chain hub. More inflation coming.https://t.co/EoPJ8nnu5q
— Alex Tabarrok (@ATabarrok) March 13, 2022
I'm inclined to agree w/early takes that Shenzhen lockdown will worsen inflation. That said, 2-week lockdown in Ningbo, a major port, had only transitory impact on delivery times, PPI.
(snip)
(Excerpt) Read more at breitbart.com ...
China has its own way style of economic warfare.
With a billion and one-half people, it can afford to lose a population the size of the US and not blink.
Serves us right for having a “supply chain” to China. Anybody who still does business with China today are traitors and need to go bankrupt.
Nixon was an idiot.
“With a billion and one-half people, it can afford to lose a population the size of the US and not blink.”
That has always been their fall-back plan.
I remember reading thirty years ago the warnings of the perils of becoming dependent on China. I never realized at the time the planned degree of dependency and how almost absolute that dependency would become.
It is the most dangerous and the most stupid policy any nation has ever made in world history. It was a decision made by all the Western nations.
Call me cynical, but China’s lock downs seem like they’re more about punishing the US economically that the well being of their citizens.
China has begun the next phase of the NWO take down of America. beginning with another round of lockdowns designed to allow the Democrats to begin the reimplementation of mail in voting so the Democrats can steal the midterms ….without a miracle I believe this country as it is, ceases to exsist in November.
Sounds just about like what they did the first time in releasing the biowarfare. That was to get Trump out of office because the tariffs WERE hurting the CCP. People’s welfare has zero to do with it. Zero.
And Bush Sr. He played a part in it, too.
Nixon gets most of the blame, though. “Only Nixon could go to China.” But if he hadn’t, they might never have been attractive as an outsourcing provider.
Economic suicide joins demographic suicide in China.
Hmmm, maybe we should become less reliant on communist china for goods and services, especially important ones like pharmaceuticals.
Not really. At that time, the Chinese were a main supplier of the North Vietnamese and his contacts with China and Russia cut back much of their materiel floating into the North Vietnamese at the time. It also defused the very high state of tension that damn near caused thermonuclear exchanges under Kennedy.
Nixon didn't make American business turn to China for increased profits - they did it themselves.
“Nixon was an idiot.”
Amen brother.
Nixon opened the doors - I’ve seen contemporary articles predicting pretty much what ended up happening. American money arming the Chinese against us.
The only problem with Nixon was that he was way too honorable to fight the Left and resigned rather than fight it out.
Business had choices - they picked treason. Nixon didn't do that for them.
Sound familiar??
Anyone who buys from Amazon, Walmart, etc., does business with China. How many consciously strive to buy American every time they shop? It may take a little more time and money, but I do that and feel a little better about not funding our own demise.
The view seems correct in part, but I suspect additionally they want to stir up the Covid fear porn some more, hoping Western nations will play "monkey-see-monkey-do."
Lockdowns are not medical suicide. They sure are economic suicide. China's "man drops dead in the street" from January 2020 was believed. They hope we'll believe them again. And further hamper economic recovery from the last round of lockdowns throughout the West.
We have to recognize that China is our enemy and our fight began a while ago.
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