Corona restrictions have been tightened in China in the past two weeks after several cities reported outbreaks. The restrictions on business and social activity affected 9.2% of China’s GDP as of Thursday, up from 7% on 16 in mid-October, according to a model by investment bank Nomura.
“After it started 20th Congress of the Communist Party, on October 16, the number of covid cases in the country is on a clear increase,” according to the Nomura investment bank’s report published yesterday. “The national lockdown has become much more severe.”
On Thursday, 214 Covid cases with symptoms and 1,123 without symptoms were reported in China. The infections were reported in more than 20 of the 31 districts in the country.
In Beijing, an outbreak of Corona led to the temporary closure of the Universal Beijing Resort Park, starting on Wednesday. It is not known if the resort will open in time for the Halloween festivities.
iPhone maker Foxconn announced on Tuesday that its factory in Zhengzhou has been affected by a small Covid outbreak. But similar cases also occurred in less central areas of the country, such as Qinghai and Xinjiang in the northwest.
Nomura’s report indicates that some provinces have not directly announced restrictions, making it difficult to assess the overall impact of the outbreak.
In a speech at the 20th Congress of the Communist Party, President Xi Jinping did not say whether the current Covid policy – which aims for “zero infection” – would continue. The congress ended on October 22, and the next day the party’s new leadership team, which includes many loyalists of the president, was introduced.
Nomura’s report notes that China’s strict Covid control will remain in place at least until March, “when the changes in the political elite will be completed and the new personalities will take full control of the cabinet.” The investment bank maintains its growth forecast for the fourth quarter of 2.8%.