Blockade in Shanghai affects Volkswagen

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Volkswagen is in trouble due to the lockdown in Shanghai , which aims to prevent the spread of COVID-19. Recently, the German automaker partially closed its factory in the Chinese city, citing supply shortages. Due to the restrictions, according to the BBC , more than a dozen companies have suspended their plans to list on the major financial market. Experts worry that the slowdown could affect the country's growth. They stop operations Official data showed that the manufacturing and service sectors in China slowed at a faster pace than expected. The National Statistics Office commented that its Purchasing Management Index (PMI) fell from 50.2 in February to 49.5 for March this year. A reading below 50 represents a contraction on the 100-point scale. The PMI figures are a summary of market conditions that are compiled through a survey of senior executives in major industries about their expectations for a number of factors, such as new orders, production and employment.


Meanwhile, the VW automobile company assured that it would partially close its Shanghai factory due to the "lack of parts from suppliers", it should be noted that it had previously stopped its operations when coronavirus infections increased in the city. What we have lost so far in production can be recovered, for example through additional shifts, once the situation eases. Volkswagen. lock in shanghai vw It is not yet known how long this measure will last, since the company Belize Phone Number List has not issued any further comments on the matter, but, at least, its factory in the northeastern city of Changchun has been without activity for several weeks. Other companies affected by the blockade in Shanghai Meanwhile, more than a dozen companies have delayed plans to sell shares in Shanghai's technology-focused STAR market, which has been described as China's answer to New York's Nasdaq trading platform. STAR's intentions, which were made public in stock exchange filings, will affect more than $9bn (£6.9bn) in fundraising.



Iris Pang, chief economist for Greater China at ING, said the weaker economic data “reflects the impact of lockdowns for mass COVID testing on production, new orders and delivery times.” lockdown in shanghai people There is no doubt that these figures reflect some uncertainty, especially when it comes to supply chains . But we are slightly more optimistic than the broader market. Iris Pang, chief economist for Greater China at ING. However, the closures in Shanghai and other Chinese cities may ultimately have "little impact" on production, noted UBS chief China economist Tao Wang. He also noted that most factories continued to operate, keeping workers in place or moving production to unaffected areas. But he added that: Logistical delays and port congestion in Shenzhen may have had some temporary impact on trade, especially imports of semiconductor components from China via the Shenzhen-Hong Kong route. Tao Wang, chief China economist at UBS. Blockade in Shanghai affects Volkswagen The lockdown in Shanghai is the largest China has had since the coronavirus outbreak began. Until now, authorities had resisted closing the city of nearly 25 million people to avoid destabilizing the economy.