can t leave the ports, can t leave the airports in shanghai, and these are goods which are ultimately going to europe and the u.s. it s going to push prices up. we re going to see more inflationary pressure. reporter: the zero-covid strategy has also forced many factories in shanghai to suspend operations. the apple supplier pegatron has suspended production at its shanghai plant and volkswagen and tesla s factories have been shut for weeks. production as resumed at tesla with elon musk saying this, tesla shanghai is coming back with a vengeance. but the company warned it too is not immune from supply chain problems. authorities in shanghai are trying to get essential production plants open under what they call a closed-loop system. that means that their staff actually sleep on the premises, on the factory floors, eat there, don t leave them, don t go home. but the problem is there s a lot
of staff who don t want to do that and there s a shortage of parts to get these factories reopened. so it s going to be a global problem. reporter: an analyst warns that the economic pain caused by the zero covid strategy could spiral out of control, saying this, quote, implementing the strategy in an excessive manner by itself could lead to disruption on the supply chain, mass unemployment, and then could translate into social, political instability, exactly what the zero-covid strategy wants to avoid, unquote. and yet shanghai s weeks-long lockdown still has no end in sight. the bottom line from china watchers to the world, brace yourselves for the fallout. kristie lu stout, cnn, hong kong. apple hit a record profit in sales in the last quarter, but it s not celebrating. the tech giant shared a grim outlook on thursday. the lockdown in china contributing to the problems apple executives anticipate,
it comes at the a steep cost to its economy and has implications for the word. we re forecasting that the lockdown in shanghai will rock china s economy. shanghai is an economic powerhouse for china. it holds one of the two stock exchanges. shanghai s port accounts for something like 3% of global through-put at any given time. reporter: shanghai is home to the world s busiest container port. it remains operational, but according to logistics platform project 44, on april 18th, some ships have been diverted away due to truck shortages, but the containers are piling up at the port, waiting on average for 12 days before they re picked up and delivered compared to just over four days in late march. shanghai is also a major aviation hub, but the outbreak has forced the suspension of many flights, causing air freight rates to skyrocket. all of this is putting even more pressure on global supply chains. this is having a supply shock. a lot of these shipments now
ukraine at the top of the hour. in the meantime, i ll send it back to max. perhaps a light at the end of the tunnel for many people in shanghai hard hit by covid and the lockdown correspond to city health officials, more than 12 million people in shanghai live in low risk areas and can now leave their homes. that is millions more than just mine days ago. fus officials say almost all of the almost 15,000 cases were reported in shanghai. and i m joined by steven jiang who is in beijing for us now. reporter: and as you can see, i m surrounded by plain clothes
now, perhaps a light at the end of the tunnel for many in shanghai, hard-hit by covid and restrictions. according to city health officials, more than 12 million people in shanghai, who live in low-risk areas, can now leave their homes. that s millions more than just nine days ago. and that comes after this noisy protest over china s covid policy. that s the sound of banging pots in shanghai as people protest from their balconies over insufficient and inequitable distribution of daily supplies and the months-long lockdown. officials say almost all of the more than 15,000 new cases across china thursday were reported in shanghai.