The strict policy “zero-Covid “exacerbates concerns about the Chinese economy

Experts warned that mass screening of the Chinese population could cause further damage to the economy of a country that has promised to continue to implement a strict policy. “zero-Covid “despite its impact on growth and fueling popular anger.

Chinese leaders have taken a tough approach to stemming the spread of the virus, by imposing a closure on Shanghai, the country’s largest city and one of its main engines of economic growth, and by imposing measures to curb movement in Beijing after taking over dozens of new infections.

Authorities refused to listen to growing public outcry over food shortages and quarantine conditions in Shanghai as senior officials pledged to adhere firmly to the strategy. “zero Covid “and” fight “criticism of politics, according to Agence France-Presse.

The Chinese government viewed the strategy as proof of its appreciation of human life and priority over material interests, and stressed that it has managed to avoid a public health crisis that other countries have witnessed.

But this approach damages the economy and poses a major political challenge to President Xi Jinping.

The president must now convince an audience, who have expressed outrage at the closures on social mediathat the compromise between economy and life is a necessary evil.

At Thursday’s meeting in the presence of Xi, the country’s top officials promised to “fight resolutely against all words and facts that distort, put in discuss or reject the country’s disease control policies. “

Exorbitant costs

But experts fear Beijing’s plan will have a significant impact on the world’s second largest economy.

Nomura analysts predicted Friday that the mandates for the only ones test mass could cost up to 2.3% of annual gross domestic product.

Shanghai’s 25 million residents have been tested multiple times, while some of Beijing’s 21 million residents have undergone repeated rounds of testa policy the government has suggested could be rolled out nationwide to combat the highly contagious mutant Omicron.

Nomura said examining half the population of the world’s most populous country once every 3 days will cost about 0.9% of GDP, while subjecting 90% of the population to a test every two days will cost 2.3%.

Ting Lu, Nomura’s Chinese chief economist, said the restrictions could come with “heavy” costs if imposed nationwide, offering only “limited” benefits because the hard-to-contain omicron could lead authorities to shut down more cities.

The gloomy outlook comes after Fitch Ratings downgraded its full-year Chinese economic growth forecast from 4.8% to 4.3%, far from the government’s official target of 5.5%.

A leading indicator of activity in the services sector fell to 36.2 in April, reaching its second lowest level ever, in what some experts say is a clear signal that the country is in recession.

One studio released Thursday revealed that China’s strict anti-Covid policy has lost “much of its appeal” for many European companies due to disruptions in supply networks, slowdowns in business and dwindling workforce.

The studio published by the Chamber of Commerce of the European Union in China claimed that the isolation operations in dozens of Chinese cities questhave caused “large-scale disturbances”.

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