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T. Breton: Economic consequences if lockdowns continue in Chinese cities

The health restrictions imposed on many Chinese cities, where factories have been suspended, “will have” economic “consequences if they last,” EU Internal Market Commissioner Thierry Breton said today, warning that inflation would ” is very important “in 2022 due to the Russian invasion of Ukraine.

Asked by France Inter about development in Europe, he said that with the war in Ukraine, it was “extremely difficult to make predictions today”. “They are reviewed every 15 days, unfortunately downwards in terms of growth, and upwards in terms of inflation, and I believe that these two trends will continue,” Breton said.

In addition, “today in China, all businesses in the Pearl River Delta, which is roughly between Shenzhen and Guangzhou, where you have the largest branches of economic activity, and especially in the field of electronics, are again restricted, as never before. China, “he said. “Obviously, we will have a break in the value chains and automatically, if this lasts, it will have consequences.”

Due to the record number of Covid-19 cases, ten Chinese cities, including Shenzhen, a technology center in the southern part of the country, are again subject to lockdown.

“We are in a battle, it is a battle with many fronts. Add to that the food crisis, because China and Russia account for 30% of wheat exports, and that will have consequences, especially in North Africa.” added Thierry Breton.

SOURCE: ΑΠΕ-ΜΠΕ

Source: Capital

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