China Apologizes for Shortages in Locked Down Region

The transcript discusses the challenges China faces with COVID-19 outbreaks ahead of the party Congress. It highlights the political sensitivity of the situation, especially in Xinjiang, where lockdowns have led to social media outcry over shortages. The impact on firms, particularly in the auto industry, is significant due to supply chain disruptions and power outages. The Chinese government is employing a 'whack-a-mole' approach to maintain COVID-19 zero policy, affecting major cities and industries.

How has the COVID-19 situation affected supply chains in Sichuan province?

What is the significance of the 'closed loop system' mentioned in relation to factories in Chengdu?