How Stringent Covid-19 Measures Have Influenced The Chinese Feed Additives Market
- 06-Jun-2022 4:02 PM
- Journalist: Xiang Hong
In China, COVID-19 outbreaks have been at their highest level in two years, which has prompted partial or citywide lockdowns in a number of locations. The Chinese government's zero-tolerance coronavirus policy has considerably hampered feed additive production in the country. Big Chinese manufacturers are now concentrating their efforts on avoiding sanctioned commerce with Russia and Belarus, as well as war-torn Ukraine, which is a major buyer of pharmaceuticals and feed additives and might affect China's export market.
Shanghai, the world's largest port, has been severely impacted since late March because of restrictions imposed in response to the country's worst COVID-19 epidemic since the pandemic began in 2020. Several firms and manufacturing plants across the country have gone under force majeure because of the government's zero-COVID regulations, causing substantial shipping delays at the port. Delivery of nutraceutical items both locally and internationally, as well as to ports with key worldwide shipping linkages, has been severely disrupted.
China's export growth slowed substantially in April, to 3.9 percent, its lowest level since June 2020, as the COVID-19 rules weighed on trade. Imports, on the other hand, were virtually unchanged in April, indicating that domestic demand was constrained. The lackluster numbers underscore how much the Chinese economy has slowed due to long-term restrictions on some of the country's most important economic centers.
On the contrary, China has enjoyed significant economic benefits from the Russia-Ukraine conflict, and the country has even "profited from Russia's misfortune." The sanctions imposed on Russia by the Foreign Ministers of the G-7 countries are seen as an economic opportunity by Chinese officials. Because European countries have objected to Chinese items being imported over Russian territory, China has designed a new route, including train, road, and seaports. However, China's economy continued to face obstacles, including rising global commodity prices and interrupted supply chains as result of the conflict. Furthermore, Chinese President Xi Jinping's dictatorial style of governance has engendered discontent in the country.