June | Regional June 2022 2022 || The The ICISA ICISA INSIDER INSIDER | Regional FocusFocus
Regional focus: The Zero-Covid policy is the main uncertainty behind China’s outlook By Hugh Burke, CEO, Asia Pacific Region, Coface Omicron hit China in February and its high transmissibility pushed daily new infections rapidly higher through March and April. Many cities across the country began imposing pandemic control measures and restrictions;
87 of China’s top 100 cities, which accounted for 70% of its GDP, have imposed some form of quarantine restrictions where harsh measures were on the rise by early April.
The widespread use of quarantine measures to achieve ‘dynamic zero-covid’ entails significant impacts on the economy. In cities under the most severe restrictions (e.g. city-wide lockdown), enterprises’ operations were suspended, non-essential employees had to stay home, logistics and warehouse services were seriously disrupted, all of which contributed to the recent economic downturn.
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