- China recorded a record number of Covid cases daily on Wednesday amid a surge in Omicron stocks.
- It has tightened lockdowns in affected areas, including Zhengzhou, home to the world’s largest iPhone factory.
- The IMF has called on China to readjust its Covid-free stance to support its economy.
Zhengzhou, a city in east-central China and home to the world’s largest Apple iPhone factory, will be largely shut down from Friday until next Tuesday, local officials said. late Wednesday.
The restrictions come amid a surge in COVID-19 infections in China. Officials in Zhengzhou called the situation “remaining serious and complicated”, mostly concentrated in urban areas.
China is experiencing a severe outbreak of the highly contagious Omicron subspecies, increasing the challenge to the country’s hardened attackers. Covid zero stance. China reported a record 31,444 local infections on Wednesday, including asymptomatic cases, the country reports. National Health Commission.
The constant drive to eradicate Covid has sparked dissatisfaction in the country. This includes Apple’s largest iPhone manufacturing plant in Zhengzhou. workers were reportedly rioting against Wednesday’s pandemic restrictions.
The surge in COVID-19 cases has also cast doubt on whether the world’s second largest economy can fully emerge from the pandemic.
early this month, chinese stock market It hit back at speculation that the country was preparing to relax its Covid-free stance. But that optimism now seems misguided. This is because there are not enough hospital intensive care unit (ICU) beds for the widespread outbreak in China. Bloomberg Intelligence said Wednesday.
“There is no way to deal with an uncontrolled wave of infections,” Bloomberg Intelligence senior pharmaceutical analyst Sam Fazelli said in a report. , China’s reopening will be prolonged.”
He estimates that a full restart of the Chinese economy is likely after 2023.
even International Monetary Fund He called on China to adjust its COVID-19 strategy to support its economy.
“Going forward, further realignment of the COVID strategy should be well prepared and will include increasing the pace of immunization and keeping it at a high level to ensure protection is maintained.” 1st Managing Director Gita Gopinath said in a statement.
Markets in China and Hong Kong were flat at midday on Thursday despite a spike in COVID-19 infections in China.