Chinese cities imposed more restrictions on Wednesday to curb a rise in coronavirus cases, heightening investor concerns about the economy, with fresh disturbances at the world’s biggest iPhone factory highlighting the social and industrial impact of strict Covid-19 measures. 19 in China.
In Beijing, malls and parks were closed and once-bustling areas of the capital looked like ghost towns as authorities urged people to stay indoors. Shanghai has banned recent arrivals from restaurants and other venues, and several cities have imposed localized lockdowns as infections approach the highest levels seen in April.
The measures are denting the outlook for the world’s second-largest economy and dimming hopes that China will significantly ease its atypical Covid policy anytime soon.
“While there is little prospect of authorities opting to back out of the Covid-zero policy over the winter, there is a significant risk that containment efforts will fail,” analysts at Capital Economics wrote. That failure could result in more lockdowns that would cause unprecedented damage to the economy, the analysts added.
China’s Covid restrictions, the toughest in the world, have fueled widespread discontent and halted production at manufacturers including Taiwan’s Foxconn, Apple’s biggest iPhone supplier.
On Wednesday, footage posted on social media showed Foxconn workers tearing down barriers and scrambling with officials in protective suits, shouting “give us our pay”. The unrest follows weeks of turmoil, which saw several employees leave the factory because of Covid controls.
Locations that account for nearly a fifth of China’s total GDP are under some form of lockdown or restriction, brokerage Nomura estimated earlier this week, a number that would exceed the GDP of the British economy.
While infection numbers are low by global standards, China has stuck to its Covid-zero approach, a policy under President Xi Jinping that officials say saves lives and prevents the medical system from being overwhelmed. On Tuesday, there were 28,883 new domestically transmitted cases, official data showed.
The International Monetary Fund has urged China to further recalibrate its Covid-19 strategy and increase vaccination rates.
“Although the Covid-zero strategy has become more agile over time, the combination of more contagious Covid variants and persistent gaps in vaccines has led to the need for more frequent lockdowns, weighing on consumption and private investment,” said Gita Gopinath, IMF official.
Residents are increasingly fed up with nearly three years of restrictions, and Wednesday’s protest at Foxconn’s factory in Zhengzhou comes weeks after crowds broke through barriers and clashed with workers dressed in protective suits in the city of Guangzhou, in the south.
Source: CNN Brasil
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