What Happened: Chinese authorities announced that they will be extending the Shanghai COVID-19 lockdown from the city’s western districts to the entire city, citing a surge of 13,000 new cases, Reuters reported April 5. Officials have drawn criticism over their policy of isolating everyone, including asymptomatic patients, and separating children from their parents if the children test positive for COVID-19
Why It Matters: Authorities will continue to enforce extremely strict measures to combat COVID-19, ignoring public cries for a more nuanced approach. The heavy-handed strategy will curb cases quickly, but the economic and logistical cost will be high, meaning financial transactions will be slowed, and imports and exports through Shanghai and nearby Ningbo port may be slowed as well. No clear timeline on the lockdown has been announced, which indicates that the lockdown and subsequent delays to shipping will continue in the near future.
Background: Asymptomatic cases of COVID-19 in Shanghai are above 13,000, with 268 new symptomatic cases. The government pulled in over 38,000 personnel from around the country to help test and treat residents in the city.
Source: Stratfor.com April 5, 2022