Lockdown of Shenzhen = More Inflation

Lockdown in Chinese manufacturing hubs Shenzhen and Changchun threatens to worsen inflation in the U.S. and to disrupt global supply chains.
The U.S. imported nearly $48 billion of goods from China in January, the latest month for which data is available. Last year, imports of Chinese goods totaled $506 billion, the second-highest level of imports from China on record.
The Chinese government has placed the city of Shenzhen on lockdown for at least a week and ordered everyone in the city to undergo three rounds of covid tests.
The lockdown has halted many manufacturing operations in Shenzhen, including those of Foxconn, a crucial assembler of Apple’s iPhones.
Shenzhen’s exports of goods reached 1.92 trillion yuan, the equivalent of around $302 billion in 2021, according to official Chinese figures. Electronics and telecommunications equipment reportedly account for over 90 percent of the total output of Shenzhen’s high-tech industries. Huawei Technologies and electric-vehicle maker BYD , which produces elec …

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