China's strict 'Zero-Covid' rules slowed down the pace of the economy
The lockdown has been announced in Changchun city which is a major auto manufacturing hub for brands like Toyota and Volkswagen. According to media outlets, Apple supplier Foxconn has also suspended its production amid tight restrictions.
Amidst rising corona cases in China, the Chinese government is following a strict zero-covid rule, which is being condemned by the citizens of China themselves and the move is being criticized worldwide. In view of the increasing cases of corona, the Chinese government is also doing a lockdown with zero-covid rule.
These stringent regulations, in addition to harming Chinese citizens, are now also threatening the world, as China's rule has left hundreds of cargo ships stranded at ports, leading to increased freight costs and global inflation.
Maersk, the world's second-largest shipping company, has suggested that the lockdown will severely affect trucking services and increase transportation costs to unprecedented levels. It is said that 90% of the world's goods are transported by sea.
Global trade could be negatively affected by rising freight charges. Inside Over reports that businesses will not tolerate this unfortunate development and the costs will be passed on to customers.
Many companies are bearing the brunt of China's strict COVID policies.