China’s e-commerce industry hit as delivery and live-streaming hub Yiwu enters second week of citywide Covid-19 lockdown

  • A representative for Cainiao, Alibaba’s logistic arm, said it was storing newly-arrived products at its Shanghai warehouse to keep operations running smoothly
  • Before the latest Covid-19 outbreak, the Yiwu government had been making efforts to reconnect with overseas buyers from Pakistan and India

A worker packs Christmas ornaments on the production floor of a factory in Yiwu, China, Oct. 19, 2021. Photo: Bloomberg

China’s e-commerce hub of Yiwu, a key sourcing centre for low cost goods, continues to cause disruptions to trade flows after thousands of e-commerce merchants suspended deliveries when the city went into a Covid-19 lockdown just over a week ago.

One out of every 10 parcel deliveries in China in July came from Yiwu in eastern Zhejiang province, according to government data, but that dried up in early August because of an outbreak of the Omicron variant. Local authorities issued a notice on August 4 asking residents not to leave the city, and a week later a strict citywide lockdown was imposed, halting virtually all delivery traffic.
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