China shut down a key terminal in one of its biggest cargo ports after one worker tested positive for COVID-19, Chinese state media have announced.

The partial closure of Ningbo-Zhoushan port will suspend all inbound and outbound services at the Meishan terminal until further notice as part of China’s “zero tolerance” approach toward COVID-19.

Dawn Tiura, CEO of Sourcing Industry Group, told CNBC that China’s stance will lead to “severe” supply chain consequences. “China has a zero tolerance for COVID. One person testing positive is enough to shut down [the] port,” she said.

The Zhoushan port is the third busiest port in the world and its Meishan terminal is key to servicing shipments to Europe and North America, CNBC said.

According to the BBC, the Meishan terminal closure will cut the port's capacity for container cargo by about a quarter.

This is China’s second coronavirus-related port shutdown this year. The first was the closure of Yantian in Shenzhen, another one of the country’s key ports, in June.

This new shutdown could severely disrupt the global economy and supply chain. Shipping firms and exporters are already scrambling to make detours.

China on Friday reported declining numbers of new locally transmitted COVID-19 cases for the third consecutive day, Reuters reported.


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