China’s zero-Covid restrictions will impact global supply chain recovery as any small disruption in the country will likely lead to “ripple effects” across the world, according to the head of shipping at HSBC.

Pandemics have shown “how efficient the supply chain is.” And there is little margin of error,” said Parash Jain, global head of shipping and ports equity research at HSBC.

“The sheer importance of China when it comes to global trade means that any small disruption in China, will have a ripple effect across the supply chain,” Jain told CNBC’s “Squawk Box Asia” on Monday.

China, second in world economic importance, doubled its efforts to increase its. zero-Covid strategyRecent spikes in infection across the nation.

Covid cases were reported in Shenzhen and Tianjin, the major ports of Ningbo and Ningbo. industrial hub of Xi’anAccordingly, there are lockdowns and curbs in major port hubs. 

China had reported 58 Covid-19-related cases by Monday according to its national health agency. The National Health CommissionAccording to the daily update, 40 cases of new infections were reported as local and 18 came from abroad. 

Beijing, despite having an extremely low rate of cases when compared with many other parts Asias, has maintained its zero-Covid strategy.

According to Our World in Data, China’s 7-day average rolling rate of cases per million residents is 0.04, while India has 568.8, 581, and South Korea 290.41, respectively.

China has the infrastructure in place to quickly decongest — whether it’s at the port or in the supply chain side, said Jain.

“However chaos that is caused by these will eventually have an effect on the other end of the ocean,” said he. “That’s why as long China retains its very strict zero-Covid policy, we can not rule out disruptions time and time again as the years progress,” he said.

Beijing has managed to maintain its position since the outbreak of pandemic in early 2020. a zero-tolerance Covid policySometimes factories have to be shut down completely. ports as a result of a single case. It is also entails strict quarantines and travel restrictions — whether within a city or with other countries — to control outbreaks. 

Global supply chain crises have been exacerbated by restrictions on Covid-19 in manufacturing and shipping.

There were renewed worries that the highly infected omicron variant might also cause a major disruption to the shipping sector.

Jain stated that large containers shipping companies “are trying get a better hold of the whole supply chain” as a result to the pandemic.

Investments are made in the logistics side of land. Investments are made on the terminal side. Some infrastructures are long overdue, especially in the mature market.

He said, “From either the customer’s or shipper’s point of view, I believe that the comfort they have over the past several decades of keeping just-in-time inventory” he explained.

— CNBC’s Weizhen Tan contributed to this story.