Are U.S. Companies Permanently Restructuring Their Supply Chains?
Beijing officials launched mass testing programs, shut down schools, and imposed targeted lockdowns on some residential buildings. The lockdown of the two mega-cities is only the latest impact of the stringent zero-COVID policy that has resulted in the repeated imposition of strict quarantine measures during the pandemic. These closures and associated effects on the global supply chain have come when the United States and other countries are reversing course on pandemic control measures. If consumer demand continues to rise in countries with relaxing restrictions, a new set of supply-side bottlenecks are expected should China continue its strict COVID measures.
