Lockdowns in China pose a greater risk to global inflation today than in 2020, analysts at Bernstein said. This is due to the fact that since the beginning of the pandemic, the world has become more dependent on Chinese goods, reports CNBC.

China's share of global exports rose to 15.4% in 2021, the highest since at least 2012.

China's exports have surged over the past two years as the country was able to bring the initial Covid outbreak under control within weeks and resume production while the rest of the world struggled to contain the virus. China has maintained its zero Covid policy while other countries loosened controls last year.

Over the past few weeks, mainland China has dealt with the worst Covid wave in two years with lockdowns and travel restrictions that foreign business leaders have described as tighter than at the beginning of 2020.

Compared to pre-pandemic levels, the cost of export containers in Shanghai is five times higher and air freight rates are twice as high compared to pre-pandemic levels, the report says, with a similar strain on supplier delivery times.

Therefore, there will be higher inflation exports, especially to China's major trading partners, but at the same time, a recovery in China's own demand will be delayed.

The analysis showed that China provides most of the overseas demand for containers, ships, rare earths and solar modules, as well as most of the mobile phones and PCs.

The report says that Chinese factories are no longer only completing the final assembly of these electronic products, but also producing components such as LCD panels and integrated circuits, indicating a faster growth in exports of these components in 2021.

China's trade data for the first quarter showed strong growth in exports. The country's producer price index and consumer price index rose faster than expected in March, according to data released on Monday.

Since the beginning of the pandemic, China has become a major manufacturer in the automotive industry, especially in the electric vehicle supply chain, the Bernstein report said.

Analysts noted that exports of vehicles and components grew by an average of 119% in 2021 compared to the previous year, surpassing the 30% growth in China's exports as a whole. The report states that the country accounts for roughly 74% of global battery production.

China is the largest car market in the world, and in the last few years it has begun to stimulate the development and purchase of electric vehicles, mainly through subsidies. Accordingly, in the past few years, foreign automakers attracted to the market have begun to produce electric vehicles for China.