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COVID-19 Lockdowns in Shanghai Threaten U.S. Supply Chains

The lockdowns are especially consequential for the auto and tech industries, according to The Washington Post (subscription).

What’s happening: Shanghai is an important hub for America’s semiconductor and electronics supply chains.

  • The COVID-19 lockdowns have brought production to a standstill and will likely cause significant delays and higher costs for American automakers, electronics companies and consumer goods firms.

A big number: “An estimated 373 million people—or about one-quarter of China’s population—have been in covid-related lockdowns in recent weeks because of what is known as the country’s zero covid policy.”

Higher consumer prices for many manufacturing goods will likely result from these lockdowns. The price hikes threaten to contribute to long-term inflation rates, which are already at a 40-year high.

What’s next: U.S. officials are closely monitoring the situation in China, and the State Department is providing frequent updates on potential impacts to the U.S. economy. Some experts fear that lockdowns could also spread to other major Chinese manufacturing hubs, including Beijing. 

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