Millions more in China are now under Covid curbs

Millions of people in China were placed under COVID-19 curbs in China this week due to local flare-ups,
deepening uncertainty over commerce and daily life in two big metropolises.

Several areas of Guangzhou and Shenzen in the south stepped up their COVID-19 restrictions, Reuters reported, with authorities saying the curbs would last for just a few days.


Reports said the area-wise curbs now stretched from these southern cities to Dalian in the north, and from parts of central Hebei province to Chengdu in the west.

China imposes these severe lockdowns despite their visibly slowing effect on the economy because of its so-called "dynamic COVID zero" policy.

That policy makes the world's second biggest economy an outlier as other countries learn to live with the virus and gradually emerge from coronavirus restrictions.

Just five locally transmitted infections in Guangzhou, a city of nearly 19 million residents near Hong Kong, prompted authorities to close indoor entertainment venues and dining restaurants for the week in some areas of a district.

Bus and subway services were reduced, and all kindergartens and primary, middle and high schools in the district were ordered to halt resuming fall semesters and offline sessions.

In Shenzhen, at least four districts with around 9 million residents in total, have ordered similar curbs.

Both Shenzhen and Guangzhou have vibrant economies - their combined economic output is equal to about half of South Korea's GDP.

Meanwhile, data showed that China's manufacturing activity dropped in August for the second month in a row.

The Purchasing Managers' Index (PMI), came in at 49.4 in August, still below the 50-point mark separating growth from contraction.

41 cities, responsible for 32% of China's GDP, are now reportedly battling outbreaks - the highest number since April, according to Capital Economics.

"For now, the resulting disruption appears modest, but the threat of damaging lockdowns is growing," said Julian Evans-Pritchard, senior China economist at Capital Economics.