Varney on China lockdowns: The world’s supply chain is 'threatened'

In his latest "My Take," "Varney & Co." host Stuart Varney discusses China's COVID lockdowns as it could impact the global economy, arguing the most important part of the "whole world's supply chain" is "threatened."

STUART VARNEY: Ignore China's COVID lockdowns at your peril! The ripples are going to hit us hard.

Here's the latest: Twenty-six thousand new cases in Shanghai. Twenty-six million residents still under lockdown. They can't go outside. China's social media is full of videos showing people on their balconies screaming for food and medical supplies. 

Gungzhou is a megalopolis and a major manufacturing center has closed its schools. Some factories have closed. Residents can't leave the city.

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You see where this is going – the supply chain – it’s threatened, and this is the most important part of the whole world's supply chain.

If their products don't arrive, all kinds of things don't get built.

And think of the politics: Xi Jinping's ‘zero-COVID’ policy is slowing his country's economy, just as it faces a real estate crash and 8 percent inflation.

Dictators facing catastrophe are apt to lash out!

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China's developing crisis should be on our radar, but it has been pushed out by all the other crises. 

It is the world's second-largest economy. It is the workshop of the world. And if it stays with ‘zero-COVID’ and keeps locking down, their economy will collapse. 

That is a strong word. But they are on the brink. The best indicator for the global economy is now the new case rate and the lockdown rate in China!

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