COVID: US monitoring lockdown in China & assessing its economic impact, says White House

The United States has been closely monitoring rampant lockdowns in China due to the recent Omicron [B.1.1.529] variant driven cluster COVID-19 outbreaks in the central Chinese city of Anyang, and other parts, and has been assessing the impact it would have on the isolated Chinese market, US National Economic Council [NEC] Director Brian Deese said during a White House press briefing on Wednesday, Jan. 12. The Chinese government last week imposed lockdowns in Anyang, Henan province over the new COVID-19 outbreaks and the NEC official assessed how that would impact the product shortages, private sector supply chains, and the dearth of Chinese factories' workers across the US.

The Biden administration, said Deese, has activated an early warning system and has been working with the American companies that rely on sourcing input components or products from Southeast Asian countries, particularly China. Officials have been trying to identify where there might be COVID outbreaks in those countries, and accordingly have been working with the State Department and USAID, and the CDC “to stabilise the situation and reduce the potential impact of a shutdown or a lockdown or otherwise.” In China and elsewhere in Southeast Asia, the lockdowns most likely are expected to have the effect because the production facilities in those geographies are principally suppliers to the Chinese market, Deese iterated.

“With respect to China specifically and the current moment, we’re monitoring it very closely,” US National Economic Council [NEC] Director Brian Deese said during a White House press briefing. 

Price surges, food shortages, private supply chain disruption 'a global phenomenon': US NEC official 

The latter stressed that in the global context, the economies are witnessing exorbitant price surges which is a global phenomenon, and one that reflects the nature of challenge during a pandemic crisis and pandemic-affected recovery. He stressed that in December, the EU saw its highest recorded inflation after it was declared the epicenter of the virus by the WHO in November, and similar such stringent restrictions like China were imposed.

"With respect to China specifically and the current moment, we're monitoring it very closely. As we assess the issue today, the lockdowns are most likely to have an effect isolated in China because the production facilities in those geographies are principally suppliers to the Chinese market," Deese said, speaking alongside the White House Press Secretary Jen Psaki. 

The US NEC official outlined the supply chain challenges that impacted the major retailers and major freight movers stressing that the United States planned to set up the inland locations to move products and impose new fees on empty containers blocked at the ports due to the pandemic to boost the goods and services delivery. He stressed that the Biden administration’s American Rescue Plan is focusing on ensuring that food shortage on the shelves across the US that flares inflation is adequately addressed. But with respect to recent lockdowns in China, Deese said, “But the situation is fluid and ongoing.  It’s something that we’re monitoring in real-time and working across the interagency, including the State Department and the CDC, to try to keep a handle on.”