China’s outbreak threatens global trade

New cases of COVID-19 climbed to about 15,000 in China on Tuesday, with about 30,500 total confirmed cases as of Monday, according to the World Health Organization. China is maintaining its “zero tolerance” strategy and has locked down much of the Jilin province in the northeast, as well as the port of Shenzhen and Dongguan, an industrial city. Millions of people are in cities where all businesses except food, fuel, and other necessities are closed. In some places, people are not allowed to leave their homes except for essential work or necessities like buying groceries.

What’s the threat to trade? Ports that ship appliances, computers, and smartphones could be shuttered. A partial shutdown in May 2021 due to a COVID-19 outbreak sent ripples through the global supply chain. For now, industries can use factories in other areas of China. Some automakers like Toyota and Volkswagen and iPhone assemblers suspended operations Monday or plan to this week.

Dig deeper: Read Anna Johansen Brown’s report on The World and Everything in It podcast about whether strict lockdowns are an effective way to battle COVID-19.