Friday, April 1, 2022

"Panic Buying Frenzy Sweeps Across China As People Rush To Hoard Food Supplies At Supermarkets"

Full screen recommended.
"Panic Buying Frenzy Sweeps Across China As 
People Rush To Hoard Food Supplies At Supermarkets"
by Epic Economist

"China’s lockdowns have set off a massive new wave of panic buying this week as millions scrambled to stock up on food supplies and medicine before movement restrictions were reimposed in several major cities. While some prepared for a lengthy period stuck at home, others were forced to quarantine in their offices to keep business running, and some were caught by surprise by the renewed mandates and remained isolated in quite unusual locations.

Over the past few days, supermarket shelves were left bare by panic buyers, creating shortages of a series of products and leading some shoppers to engage in physical altercations over the remaining supplies. The fresh measures to contain the latest outbreak are also triggering shock waves on the global supply chain, sparking mass businesses shutdowns, port closures, and pushing domestic production down. All of these disruptions are adding immense pressure on food prices – not only in China but in global markets as well.

Mass testing is also being conducted to screen all of Shanghai's residents for the virus. Given that the city is home to 25 million people, rumors started circulating that authorities would actually extend the city’s lockdown for several days to be able to spot all new cases and contain local outbreaks. As a result, residents started another panic buying frenzy in anticipation of the restrictions. “We're all wondering if it's really possible to test, analyze and then sweep up the [infected] among almost 25 million people in a matter of days, then simply open up again. We're preparing for weeks of this," said one resident.

Others have been forced to isolate themselves in far more unusual locations. One woman’s story went viral this week when her community's lockdown began while she was at the gym. Her experience was similar to a widely reported of a woman in Zhengzhou who had to quarantine for several days at a hot pot restaurant. On the other hand, for millions of people, the restrictions have caused lots of anxiety. One footage showed supermarket shelves completely emptied out of all products. Additional video captured the moment two men erupted into a fight near fresh produce stands. Some have also taken to social media platform Weibo to urge help as they were not able to get medicine or treatment due to pharmacy closures.

The chaos is expected to continue as the number of cases keeps rising. Some of the nation’s biggest ports have been shut down, disrupting trade, domestic production, and the flow of goods in and out of the country. Both Shenzhen and Shanghai are important economic powerhouses for the rest of the world, and the recent closures are raising fears about severe interruptions to the global shipping industry and supply chains, according to industry insiders. That is already sparking massive ‘shock waves’ across global supply chains, and contributing to rampant food inflation, they added.

The disruptions are affecting the stability of the global manufacturing supply chain, creating huge backlogs and exacerbating shortages in foreign markets. However, the damages consumers are going to face are likely to be deeper and more long-lasting than what most companies are going through. The impact of shortages, delivery delays, and sudden movement restrictions will continue to weigh on prices and make food inflation a permanent reality, not only for the Chinese but also for consumers all over the world."

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