Parash Jain Says Any Small Supply Chain Disruption In China Will Have Ripple Effect

On CNBC, Parash Jain of HSBC HSBC said although demand in 2021 is 6% higher than the 2019 level, it has been uneven around the world. Overall global trade is "handsomely ahead" of the pre-COVID level, Jain said. 

Although disruption in any part of the supply chain will have a ripple effect, the "sheer importance" of China due to its global trade means that any small disruption in the country will have a ripple effect across the worldwide supply chain, he said.

As long as the Asian nation maintains its zero-COVID stance, the supply chain disruptions from "time to time" can’t be ruled out in the year ahead.

The latest crisis has also shown "how lean the supply chain has become," Jain added.