China’s famed Zero-COVID policy is not only impacting Chinese citizens, but it is also posing a huge threat to the rest of the world, as the country’s “stupid” policies have stranded hundreds of cargo ships in ports, affecting freight rates and worldwide inflation.
The shutdown, according to Maersk, the world’s second-largest shipping firm, will have a significant impact on truck services, with transportation costs rising at an unforeseen rate. It is estimated that 90% of the world’s goods are transported by sea.
Increased freight prices could have a detrimental economic impact on global trade. According to Inside Over, businesses will not tolerate this sad trend and will shift the burden to customers.
Logistics businesses have encouraged vessel operators to discharge products at other ports due to high traffic constraints at Shanghai’s port.
Customers are ultimately responsible for the extra shipping and storage fees. As a result, China is seeing its worst outbreak ever, and the rise in freight rates might have an economic impact on global trade.
Other ports may not be able to fill the hole if the delays persist for an extended length of time. Because to the high COVID limitations, several factories are having difficulty maintaining momentum.
China’s strict COVID laws have hit many businesses hard. Changchun, a key auto manufacturing hub for manufacturers including Toyota and Volkswagen, has announced a lockdown. According to the media site, Apple supplier Foxconn has also halted manufacturing as a result of the new restrictions.
Global inflation and corporate closures are impending threats, but Chinese individuals are already experiencing the worst. As the world returns to normal, China’s prospects remain dim, as the omicron variety is causing a surge in new COVID cases.
The terrible reality of China’s vaunted Zero-COVID policy has also been exposed by leaked social media videos. Two viral videos have caused worldwide consternation. The videos have been widely panned.
People can be seen screaming from their balconies in Shanghai, in one of the popular videos. Over 20,000 cases per day have been reported in Shanghai, China’s financial capital.
Other footage shows healthcare professionals slapping someone in the face in violation of quarantine restrictions. The policy is to lock everyone in their homes, regardless of symptoms.