China’s Covid boom hits factories and consumers
There is a severe strain on China’s economy as a wave of Covid cases sweeps across the nation, putting its economy under severe stress.
There has been no clear indication of how the infection has spread on a national scale. since the world’s second-largest economy drastically eased its restrictions on Covid earlier this month, resulting in an inability to determine how widespread the disease has spread. There have been tens of thousands of new cases per day in several cities and provinces.
As a result of the rapid spread of infection, most people have been forced inside, and restaurants and shops have been empty. As a result of more workers getting sick, factories and companies are forced to shut down or reduce production because more workers are getting sick.
Beijing abruptly veered from its “zero-Covid” policy, which had been in place for several years, causing the Chinese economy to slump. Because of widespread lockdowns, the retail sector contracted in November, and unemployment reached its highest level since June.
In recent weeks, there have been indications that top leaders are shifting their focus back to growth next year and that they are betting on easing pandemic restrictions to help lift the economy upward.
Car and home sales were down in the first few weeks of December. During the period between December 1 and December 18, the Chinese Passenger Car Association reported over 946,000 vehicles were sold by auto manufacturers, a 15% decrease from the same period last year, according to the most recent figures.
According to Chinese financial data provider Wind, sales of homes by floor area in the 30 major cities dropped by 44% over the same period last year as compared with the same time last year. Home sales in major cities like Beijing and Shanghai fell 53% last week compared to the same period last year.