BEIJING — China’s latest Covid lockdowns are a greater risk for global inflation today than they were in 2020, Bernstein analysts said.

The reason is that the world relies more on Chinese products since the pandemic started, analysts stated in an April 8 Note.

China’s export share grew to 15.4% globally in 2021. This is the highest level since 2012, at least.

China’s exports have risen in the past two years because the country was capable of controlling the initial Covid epidemic within weeks and resume producing, while other countries struggled with the virus. China’s zero-Covid policy has been maintained, while countries around the world have eased their controls over the past year.

China has taken on its most severe Covid wave in the past two years, imposing travel restrictions and locking downs that have been described by foreign business leaders as more difficult than early 2020. Shanghai and other coastal centres have suffered the most from stay-home orders, as well as virus testing.

According to a Bernstein report Jay Huang from Bernstein, and others, “The macro-impact of China lockdowns may be quite high” and that the market is still not pricing it in, a team reported.

According to the report, Shanghai’s shipping costs have increased five-fold and Shanghai’s air freight rates by two-fold compared with pre-pandemic levels. The same strains are also affecting supplier delivery time. This would lead to higher inflation exports, particularly to China’s major trading partners, but also delay China’s demand recovery.

Chinese company makes electric cars, despite disruptions in the supply chain NioAnnouncement production haltsOver the weekend some production resumed on Thursday. German automaker VolkswagenIt was reported that its factories located in Shanghai’s outer suburbs and the northern region of Jilin were still closed as of Thursday.

Bernstein’s analysis found that China manufactures the majority of overseas demand for containers, ships, rare earths and solar modules — along with the bulk of mobile phones and PCs.

The report stated that Chinese factories are now producing components such as integrated circuits and LCD panels in addition to final assembly of electronic products. This will lead to a faster increase in the exports of these parts in 2021.

China showed steady export growth during the first quarter of its trade data. Data released Monday showed that the nation’s March producer and consumer price indexes were higher than anticipated.

China, the biggest auto market in the world, began to emerge as the most important. promote electric vehicle development and purchases in the last several years, primarily through subsidies. So, automakers from abroad have begun to enter the market. launch electric vehicles for ChinaIn the past few years.

Now, TeslaAccording to the Bernstein Report, BMW and other automobile manufacturers are making more electric cars in China for export, including to countries like Saudi Arabia, Chile, Egypt, and Saudi Arabia. The report stated that China’s state-owned automakers SAIC (for fuel-powered vehicles) and Chery (for passenger cars) are the largest exporters of Chinese passenger cars by volume from China. It also noted growing sales to Chile, Egypt, and Saudi Arabia.

Although the impact of Covid lockdowns upon auto-related supply chain chains was not discussed in the report, analysts noted that many Korean and Japanese carmakers were affected by production interruptions when Covid locked Wuhan down.

According to China Passenger Car Association, March saw passenger car exports increase by 14% to 107,000 units from last year. New energy vehicles accounted for 10.7%. According to the China Passenger Car Association, this report highlighted external uncertainty and decreased exports to Europe.

China’s exports of vehicles accounted for about The Bernstein Report stated that 3.7% of foreign vehicle sales will be outside the country by 2021. This is an increase from the 2.2% recorded in the previous two years.

— CNBC’s Michael Bloom contributed to this report.