Vision Times reported that Yiwu City, Zhejiang Province, China’s largest small commodity trading base, was locked down on August 11 due to a COVID outbreak. This has caused more difficulty for China’s economy.
Since August 14, most streets in Yiwu have restricted traffic. So the delivery of foreign trade orders has been blocked.
Chen Xianchun, sales manager of Yiwu Jinzun Stationery Manufacturing Company, said that all production and logistics activities of Yiwu Jinzun have been halted during the lockdown. Since customers couldn’t wait, Yiwu Jinzun had to offer a refund.
Yiwu supplies many products and merchandising used for the 2022 FIFA World Cup held in Qatar. However, there are less than 100 days left for this famous event. Meanwhile, the city does not know when the lockdown will be lifted.
Besides, Yiwu also contributes 2/3 of the world’s Christmas goods. According to Vision Times, Christmas orders are seen as an important part of boosting China’s foreign trade in the second half of the year.
Although the economic damage caused by the Zero-Covid policy is huge, the Chinese Communist Party still firmly maintains this policy.
On July 28, CCP’s Politburo issued a directive to prevent the epidemic and maintain a stable economy.
Vision Times cited experts saying that CCP still puts controlling COVID first and economic development second in their latest directive.
A Bloomberg report quoted economist Larry Hu as saying that the general trend of the Chinese economy is that exports will slow down in the next few months and may reach a negative value by the end of the year.