China’s Omicron Outbreak Is Even Worse News for Global Supply Chains

(Bloomberg) — An omicron outbreak in China is sending disruptions rippling through supply chains as manufacturers and shippers brace for shutdowns inside the world’s-biggest trading nation if it can’t contain the fast-spreading Covid-19 variant.

In 2020 and 2021, China’s “Covid Zero” strategy meant factories could stay open throughout the pandemic to produce everything from health equipment to laptops that global consumers hoovered up at a record pace. But there have been confirmed cases of local infection every day since mid-October, and it’s likely that even tougher restrictions will be needed to curb omicron’s spread, with consequences for ports and factories as more cities lock down.