From Tesla’s giga factory to a huge Disney resort, many multinational companies have their Chinese foothold in Shanghai. But in recent days the usually bustling financial centre has been stopped in its tracks after a spike in coronavirus cases.
With little notice, officials imposed a lockdown on the city’s more than 26m residents. The restrictions, which started as a two-stage lockdown last week, have now been expanded to confine practically all residents to their homes.
The latest round of quarantining is China’s largest since the coronavirus outbreak was first identified in Wuhan at the end of 2019.
This lockdown could turn out to be particularly costly for the world’s second largest economy.
As well as being a major focus of the financial industry, Shanghai is a hub for semiconductor, electronics and car manufacturing. It is also the world’s busiest shipping port.
Xu Tianchen, China economist for the Economist Intelligence Unit said short-term supply chain disruptions will have an impact on China’s economy as a whole.