London Daily

Focus on the big picture.
Friday, Mar 06, 2026

China lockdown: What do zero-Covid policies mean for UK prices?

China lockdown: What do zero-Covid policies mean for UK prices?

Some of China's biggest cities have been hit by major Covid lockdowns this spring, and it's had a disruptive effect on the country's economy.

However, it's not just people in China who are going to be affected.

As one of the world's biggest exporters, any halt in production could have an impact on prices for consumers across the world, including the UK - which last year imported nearly £70bn worth of goods from China.


Phones


China produces more than a third of the world's electronic goods.

Mobile phones are one of the top categories of goods that the UK buys from China. Between 2020 and 2021, the UK imported £7.3bn worth of telecoms and sound equipment.

Several companies that supply components for Apple - Pegatron, Quanta Group and Compal Electronics - have had to close factories in the Shanghai area because of Covid lockdowns.

By mid-April, the production of three million iPhones had already been affected, according to analysis from investment firm Wedbush Securities, with knock-on effects expected on iPads and MacBooks.

The production of iPhones has been significantly delayed


Chinese telecoms giant Huawei has also delayed opening a new plant in Shanghai.

The city produces about one third of all of China's computer chips, while the neighbouring province of Jiangsu produces about 10%.

The sector was already experiencing supply problems because of a surge in demand last year.


Computers


Lockdowns could also affect the production of computers and printers.

This is not just about delays to exports - it is also because China needs to import key materials in order to produce the semi-conductors in these devices.

Covid restrictions mean that deliveries to Europe have been delayed by an average of seven days, says Alicia Garcia-Herrero from the Brussels-based think tank, Bruegel.

Transport delays could mean higher prices for computers and laptops


Currys PC World told the BBC that the impact of lockdowns was yet to filter through in terms of the availability of products. But it said it was now seeing increasing costs caused by transport problems in China.

China has tried to keep some factories running and ports open by having key workers stay on the premises. However, despite this, it is reported that Shanghai - the biggest container port in the world - is still not operating at normal capacity.

Lockdowns have also lengthened delivery times because Chinese businesses have started shipping their products using alternative ports, which are further away.


Cars


The UK doesn't source many cars directly from China but does buy a lot from the EU, with the bloc accounting for more than 80% of UK vehicle imports in 2020.

EU car production relies heavily on Chinese-made components - for example, most German tyres and brake pads are made in China, according to Chinese official data.

Components made in China are used in millions of vehicles assembled in Europe


Manufacturing areas such as Guangdong, Jilin and Shanghai have all been under various lockdowns in recent months.

As with electronic goods, car production was also hit by the global chip shortage last year. The sector is now having to deal with transport delays and backlogs caused by lockdowns as well.

In March, the prices for some of the most popular cars in the UK were already as much as 26% higher compared with three years ago, according to one car-buying website.

Ms Garcia-Herrero says if China raises its prices because of increasing costs from the lockdowns, "the consumer in the UK will end up paying for it".


Clothing


Clothing is the fourth largest category of goods imported by the UK from China.

Jiangsu province, 250 km north of Shanghai, accounts for over 12% of China's clothing production, according to official data.

Although many factories remained open by keeping workers in a "closed loop" system, transport problems have affected exports. In April, the province closed more than 100 toll booths on the main roads to Shanghai and other major export hubs, due to Covid restrictions.

Clothing is among the top categories of goods imported from China


A spokesperson for Primark told the BBC that "to date, we have managed to keep any disruption resulting from the lockdown in Shanghai to a minimum".

However, clothing and footwear prices in the UK rose 9.7% in the year to March 2022, according to the Office for National Statistics - with price rises due to global pressures on supply chains and energy costs, according to the UK Treasury.


Cleaning products


China is a major producer of chemicals used widely around the world, and major global chemical manufacturers have plants located in the Shanghai area.

For the UK, they represent the fifth biggest category of imports from China, and one of the most used chemicals is bleach.

There's not been a huge impact as yet on cleaning products in the UK


Some of the major industry players have said they've been able to keep factories open, but acknowledges they are not always operating at full capacity.

A spokesperson for Unilever, which makes brands such as Cif cleaning products and Domestos bleach, told the BBC that although the costs of raw materials were now at their highest for a decade, so far there has been relatively little impact from lockdowns in China.

Newsletter

Related Articles

0:00
0:00
Close
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
×