China Sales Factors. Few saw the CCP, as Olympics were readied...

China Sales Factors. Few saw the CCP, as Olympics were readied for...adopt this approach.

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The “Factory to the World” Is Closing Down

One major concern is China. China is currently pursuing a COVID Zero policy. This means that China has zero tolerance for even a single case of COVID.

If COVID appears, China will isolate the individual, do a massive track-and-trace operation and then forcibly remove entire neighborhoods to quarantine camps outside the city limits for mandatory lockdowns of 14 days or more.

If more than a few cases are detected, China will follow the same procedure but on a much larger scale. They will relocate hundreds of thousands of people if needed and shut down entire cities. This has already happened in Xi’an, a city of 1.5 million people and a major manufacturing center.

A new lockdown just arose in Henan province, which is the center of Chinese electronics production. China has also locked down the port of Ningbo, which is the second largest port in China after Shanghai, and one of the largest in the world.

China has also required that crews on arriving vessels must be confined to the vessel and are not allowed onshore for normal rest and recreation. Since these crews often spend six months or more at sea, vessel operators are starting to schedule trips that avoid China.

That means that even when goods are produced, they cannot necessarily be shipped because of a shortage of vessels and crews.


The situation is getting worse, not better, and will deteriorate even more as we move toward the Beijing Olympics and the Lunar New Year holidays in China.