Global manufacturers supplying products from China are continuing to be affected as COVID-19-related shutdowns are continuing in a number of regions in China.
The Bank of Korea said in its report on Feb. 20 that the Chinese government is still sticking to its zero-infection policy and this is leading to consumption and production contraction to increasingly affect the Chinese economy.
“Production lines and logistics facilities are being underused to add to supply chain uncertainties,” it said, adding, “Samsung Electronics is located in Xi’an, LG Electronics, Volkswagen and Toyota are located in Tianjin, both regions were recently shut down due to omicron, and the shutdown temporarily reduced their manufacturing operations.”
The bank also said that the Chinese government’s policy is likely to be maintained for a while in view of concerns over spread and upcoming social and political events.
Source: Business Korea