Half of China’s exports are produced in areas that are now experiencing COVID outbreaks and three quarters of its exports are shipped from them. It is still possible that infections can be suppressed without causing widespread disruption to global supply chains. That’s what has happened with every outbreak in China since the original wave was contained. But the risk that global supply chains links within China get severed is the highest that it has been in two years. In view of the wider interest, we are also making this China Economics Update available to clients of our Global Economics Service.
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