China faces long-term damage from the outbreak of Delta
China has been fighting a second outbreak of the epidemic delta coronavirus mutant since late spring. The latest waves, which are believed to have started at the airport in Nanjing, the capital of Jiangsu Province, have spread to more than half of the Chinese states.
NS The financial damage is already clear Tourism is declining again and exporters face new logistics bottlenecks during the peak season of late summer.
China, like all other waves, has the potential to control this latest wave with a powerful combination of mass testing, targeted blockade, quarantine, and contact tracing. However, what is now clear is that this cat-mouse pattern can last for a long time. This means that every time a new outbreak occurs and a country’s containment device goes out of control, consumers and exporters can suffer repeated damage.
So far, the country is firmly committed to its “zero tolerance” stance on viruses, and trial balloons on less restrictive policies from a few well-known Chinese public health experts are like China’s previous health. A high-ranking minister urging a firm backlash from things to the state media.Given the Delta tightening grip Unresolved questions about effectiveness on Earth Chinese vaccine against itIt seems unlikely that there will be any major policy changes until mid-2022 at the earliest.
Bureaucrats have been firmly informed that they are strangling for future outbreaks, which could increase future incidental damage to the economy. Close travel and local venues whenever an outbreak is underway, even if it has not yet affected their community.
In addition, the Chinese themselves, who have been struck by the image of fear abroad over the past year, are likely to respond to very strong preventive actions.
All of this can have serious consequences. With the exception of last year, consumption and growth in China’s services sector, which has been the source of all China’s net employment growth since 2012, could continue to lag much longer than most economists had previously expected.