Last Updated on November 8, 2022 by Bitfinsider
The Covid situation in China continues to deteriorate, preventing the country from eradicating the virus and easing restrictions.
The daily case count reached its highest level in six months over the weekend. Guangzhou has indefinitely postponed the start of the auto exhibition that was scheduled to begin next week. According to social media, Beijing schools are also debating whether or not to move classes online.
According to Nomura’s model, China’s Covid regulations significantly impacted 12.2% of the national GDP as of Monday, up from 9.5% a week earlier. The Japanese bank said that more than one-fifth of the Chinese population was subject to some form of supervision.
Guangdong is the most affected province, with the majority of cases concentrated in one district. More than twenty of China’s 31 province-level regions have reported recent Covid infections.
Klaus Zenkel, vice president of the EU Chamber of Commerce in China and chairman of its South China chapter, stated on Tuesday that a significant number of business activities have been canceled or postponed.
“People don’t dare to travel. Too many restrictions,” he said, noting that Guangzhou and Shenzhen firms “cannot even participate” in China’s international import expo in Shanghai this week. “How can we sustain customer relationships when we cannot meet in person?”
The increased impact of Covid on China’s economy occurred during a week in which numerous investors hypothesized that China will soon ease its tight Covid policy.
Saturday, at a news conference, officials refuted the suspicions by stating that the present zero-Covid policy will continue.
In a report published on Monday, Nomura’s Chief China Economist Ting Lu and a team stated, “We continue to believe that, while Beijing may fine-tune some of its Covid measures in the coming weeks, these fine-tuning measures could be more than offset by local officials’ tightening of the zero-Covid strategy.”
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