Huawei’s Richard Yu Predicts Severe Economic and Tech Sector Losses Due to Shanghai Lockdown
A senior executive at Huawei has raised alarm over the impact of China’s strict zero-Covid policy, warning that it could lead to significant losses for the tech sector and disrupt the global supply chain. Richard Yu Chengdong, head of Huawei’s consumer and automotive divisions, highlighted the risks posed by the ongoing lockdown in Shanghai, a critical hub for both tech production and global trade.
Yu emphasized that if Shanghai’s production does not resume by May, industries reliant on the city, especially the automotive sector, could come to a standstill. He predicted “massive losses” and severe consequences for the broader tech and industrial sectors, adding that the effects would ripple across the global economy.
Huawei’s warning reflects rising concerns about the economic toll of China’s Covid containment measures, particularly as Shanghai remains under a stringent lockdown. The city is home to the world’s largest container port, and its shutdown is causing widespread disruption. As case numbers continue to rise in Shanghai despite the harsh restrictions, President Xi Jinping has reiterated the government’s commitment to pursuing a zero-Covid strategy, underscoring the challenges facing both China’s economy and the international supply chain.
