Lockdowns in Shanghai and different Chinese language cities pose rising menace to the financial system

A lockdown continues in Shanghai on April 6, 2022, to curb coronavirus infections. (Photo by Kyodo News via Getty Images)

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Hong Kong
CNN Business
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China’s unwavering commitment to stamping out Covid by locking down big cities such as Shanghai threatens to deal a hefty shock to its vast economy, place more strain on global supply chains and further fuel inflation.

Shanghai — home to China’s leading financial center and some of its largest sea and airports — has been under lockdown for 12 days, and there’s no sign of it ending.

Small businesses have been hit hard, with shops and restaurants being forced to shut down. Tesla, as well as many Chinese and Taiwanese manufacturers, are unclear about when they can restart their factories. Meanwhile, port delays are getting worse, and air freight rates are soaring, putting even more pressure on global trade.

The stringent restrictions have dispelled any expectations…

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