The worst of supply chain disruptions in China is over: Morgan Stanley

THE worst of the supply chain disruptions in China as a result of the Covid-19 pandemic and lockdowns appears to be over, but the road to recovery will likely be slow and bumpy, says Robin Xing, Morgan Stanley’s chief China economist.

Speaking at a virtual media briefing on Friday (May 20), Xing said “we have seen the light at the end of the tunnel”.

“We think the second quarter in China will see a quarter-on-quarter contraction in gross domestic product (GDP) growth amid the Covid and the lockdowns. Starting from the third quarter, we see a pickup in the supply side of production activities with the new approach of handling Covid before a Covid-zero exit strategy,” said the economist.