Now that China has relaxed its Zero COVID policy and lifted both movement and lock down restrictions that led to protests around the nation, it appears as if the OMICRON variant is now running rampant through much of the country. While Chinese government officials acknowledge the death of only a handful of individuals due to COVID, western media outlets are reporting millions of respiratory-related deaths and a different form of angst – massed funerals. The problem is so bad that crematoriums are running round-the-clock in an effort to deal with the number of bodies being brought in day and night. The World Health Organization (WHO) has been monitoring the situation and, based upon their own data, and pointing to the inability of the Chinese to adequately deal with the pandemic, predicts that at least 1,000,000 people will likely die from COVID this winter unless the government can come up with a plan to deal with current conditions.

Needless to say, the economic situation is once again becoming tested, as people refuse to congregate or take mass transit to their jobs, further exacerbating the problem. Naturally, if people cannot report to work, they cannot produce the goods the world expects to be made, which, as you might imagine, includes toys and diecast merchandise. While we don’t want to raise the red flag just yet and get everyone in a tizzy, it doesn’t take a world renowned economist to sift through the data and announce that stalled assembly lines and fearful workers translates into fewer goods being produced. Sorry to sound so dire, particularly at this time of year when everyone is in a festive mood, but we envisage tough times ahead for both the diecast industry and other sectors of the economy for much of 2023.