Health China's zero-Covid strategy burdening industry heavily

08:30  31 july  2022
08:30  31 july  2022 Source:   pressfrom.com

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Under the pressure of the strict zero-covid measures in China, the mood in Chinese industry unexpectedly deteriorated in July. The official shopping manager index (PMI) fell from 50.2 in the previous month to only 49 points, as the statistics office in Beijing announced.

China verfolgt eine strenge Null-Covid-Strategie. © Picture Alliance / Oliver Berg / dpa China is pursuing a strict zero-covid strategy.

Such a value under the 50s mark on the important economic barometer indicates a decline in industrial activity in China. Experts had actually expected a value of just over 50 points in the previous month.

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During the rest of the world, trying to live with the Coronavirus, China unchanged a zero tolerance strategy to suffocate every outbreak in the bud. The economic recovery suffers from the strict measures, which are less effective against the highly contagious omicron variant. In the second quarter, the second largest economy in the world only grew by 0.4 percent compared to the comparison period of the previous year. That was the weakest value since the beginning of pandemic.

Actually wanted to achieve growth of 5.5 percent this year, but this seems less and less realistic. Experts only expect around four percent due to the covid restrictions and the ongoing real estate crisis in China.

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