The United States is closely monitoring a coronavirus lockdown in Shanghai, China’s financial hub, as it could cause delays to the supply chain.

At a press conference on Friday, April 8, White House Press Secretary Jen Psaki said, “We’re seeing the impacts” of the COVID-19-related regulation on “factories, warehouses, and trucking.”

Psaki made the remarks after a reporter asked if the United States is monitoring Shanghai, which is under lockdown for the COVID-19 pandemic.

The Shanghai authorities have imposed a citywide lockdown due to the resurgence of the COVID-19 pandemic. Some plants in the city have suspended their operations after the local government banned travel throughout the city since March 28.

According to Bloomberg, Shanghai-based electric automaker Nio Inc. became the latest to halt its production due to supply chain disruption.

Nio said that its suppliers in Shanghai, Jilin province, and Jiangsu province had suspended manufacturing, so it halted car production and delayed deliveries.

Tesla’s Gigafactory in Shanghai has also been shutting down since the city went into a phased lockdown on March 28.

According to the National Health Commission of China, the country reported 1,318 confirmed cases of COVID-19 on April 9, of which 1,006 were in Shanghai.

China also recorded 25,111 new local asymptomatic infections, including 23.937 cases in Shanghai.

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