After the end of the lockdown in Shanghai, it will probably take months before the problems for the German economy are solved. “It will take a few weeks for the logistics to be rebuilt,” said the delegate of German industry, Maximilian Butek, in the eastern Chinese port metropolis on Thursday of the German Press Agency. “It may be months before companies in Germany no longer feel anything.”
The restart in China is therefore not that easy either: “The sudden resumption of production will probably lead to delivery bottlenecks and overloads,” said Butek. Containers that got stuck in the world’s largest port in Shanghai first had to be handled. Services that have been put on hold for weeks must also slowly start up again.
German companies in China could slowly resume production after more than two months, but the effects of the lockdown are likely to continue to weigh on the economy – albeit less than in previous months. “Some companies will need until the end of the year to recoup the losses of the past few months,” said Butek. A “slow recovery” of the second largest economy can be expected.