China’s ‘zero-Covid’ approach is disrupting supply chains and could cause damage well beyond the country’s borders. While economic costs alone will not bring a change of direction when politics is driving policy, the reality of the virus’ infectiousness may compel Beijing to tolerate certain...
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The Chinese economy is expected to take a heavy hit from the spate of Covid-19 lockdowns.
As the Omicron variant of Covid-19 proves to be enduring despite the deployment of harsh lockdown measures, the economic disruption could expand even further in the coming weeks and months.
The disruption to the global supply chain could get worse, while the slow-motion bursting of China’s property bubble could turn into a rout. But despite the dire economic consequences, changing the “zero-Covid” policy would be very difficult before the 20th national congress of the Communist Party.