The news: Major manufacturing hubs in China, including Shenzhen and Dongguan, have been put under lockdown after detecting new COVID-19 cases, per Bloomberg.
How we got here: While most of the world has loosened coronavirus-related restrictions, Beijing maintains a hard stance on COVID-19 outbreaks.
What this means for retailers: Many companies rely on goods manufactured in China. Even if their factories are operational, it’s getting harder—and more expensive—to get goods out.
Shoppers in China feel the pinch: In addition to its international impact, Beijing’s zero-COVID policy is largely hurting the Chinese economy.
The big takeaway: The combination of war in Ukraine and manufacturing shutdowns in China has added to the challenges retailers face, making it difficult to guarantee inventory and keep prices down.
Further reading: For a closer look at how China's lockdowns are affecting the tech and auto industries, check out the coverage from our Connectivity & Tech Briefing here.