Covid is still playing a substantial role in disrupting global supply chains. We see pockets of improvements, only to get setbacks when key sites encounter a COVID-19 outbreak and renewed lockdowns. China has been dealing with Covid flareups in key manufacturing hubs, affecting production as well as import and export. Supply chains are finely tuned, sensitive ecosystems, where one ripple can be felt throughout the chain.


Covid policy is coming with a big economic cost. In mid-March, more than 21 cities including Beijing, Shanghai and Shenzhen were in lockdown. Currently more than 26 million people are in lockdown in Shanghai as China faces the worst outbreak since January 2020. The Caixin services Purchasing Managers' Index (PMI) indicated that March also had the sharpest decline in two years.

Lange is closely monitoring the situation in China, and business contingency plans have been activated.