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Fears of More Factory Shutdowns as More Cities Impose Movement Restrictions in China

Following the lockdown of Shanghai, China, movement restrictions have begun in Suzhou, Jiangsu Province, and other cities. In order to prevent the influx of infected people, there is a growing movement throughout China to require PCR testing and mandatory quarantine of cargo truck drivers for a certain period of time, which may accelerate the disruption of the logistics network and further increase the number of factory shutdowns. In Shanghai, Sony Group and Ajinomoto have already shut down their factories. In order to avoid a sharp economic slowdown, the Chinese government has begun to ensure smooth logistics and supply chain stability in order to resume production, but it is unclear to what extent the damage will be contained.


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