China Anti-Virus Curbs Create Fears Of Global Economic Impact

The government reported Tuesday that more than 253,000 coronavirus cases had been discovered in China in the last three weeks, and the daily average is increasing.

This puts more pressure on officials attempting to lessen economic harm by loosening restrictions that keep millions of people inside their homes.

Earlier this month, the government’s Communist Party committed to lessening disturbances from its “zero- COVID” plan by loosening up rules.

However, the most recent round of breakouts poses a challenge, leading big cities like Beijing to compel industries to separate their workforces from outside contact, close stores, and offices, and block off populated districts.

This has increased concerns that a decline in Chinese corporate activity could harm the fragile global trade.

The official China News Service cited the National Bureau of Disease Prevention and Control as saying that the average daily cases over the last week were 22,200, twice the rate from the week before.

China has fewer infections than the United States and other big nations combined.

While other governments are reducing travel and other regulations and attempting to live with the virus, the ruling party is adhering to “zero COVID,” which advocates for isolating every case.

In addition to 25,902 instances with no symptoms, the government announced 28,127 cases discovered within the previous 24 hours on Tuesday.

Nine thousand twenty-two people, or over one-third, were in Guangdong province, home to Hong Kong’s neighboring export-oriented industrial hub.

Global stock markets declined on Monday as concerns over China’s restrictions were added to fears of a Federal Reserve official’s remark made last week that the already high-interest rates in the United States could need to increase even further than anticipated to tame soaring inflation.

Tuesday saw a mixed day for shares.

According to Fawad Razaqzada of StoneX, investors are “worried about diminishing demand as a result of a less mobile Chinese economy amid expectations there would be additional COVID-related lockdowns.”