China lockdown will cause more supply chain headaches

China has locked down factories and ports in cities where COVID-19 has been detected, which could affect a large number of companies that import goods into the U.S., such as Adidas and Nike. “The risk posed by the Omicron variant is that we could take a huge step back in terms of supply-chain bottlenecks,” said Frederic Neumann, co-head of Asian Economics Research at HSBC. “This time, the situation could be even more challenging than last year given China’s increasingly significant role in global supply.”