HM Wilkins Imperial - China’s COVID Policy Causes Uncertainty

Hong Kong, Hong Kong S.A.R., December 03, 2022 --(PR.com)-- While much of the world now speaks of the pandemic-era as a thing of the past, China continues to battle the virus. Its zero-COVID policy has left little room for the country and its economy to maneuver itself out of the pandemic. A recent report by HM Wilkins Imperial shows how China’s desire to stamp out COVID-19 through the reliance on lockdowns, quarantine and mass testing is causing tremendous harm to its economy and sentiment.

China’s population is growing increasingly frustrated with the seemingly endless lockdowns and constant tightening of pandemic restrictions. HM Wilkin Imperial analysts have warned that recent protests against these measures could add to a growing feeling of uncertainty in a global economic environment that is already racked by inflation.

The recent report by HM Wilkins Imperial revealed that social unrest is not the biggest or only consequence of China’s zero-COVID policy. For decades China has been an essential part of global supply chains. In October this year, Chinese exports declined for the first time in more than 2 years when the pandemic took hold of the global economy. Analysts at HM Wilkins Imperial said the decline could in part be attributed to weakening demand. However, China’s factories have suffered this year even as the rest of the world’s economies have tried to return to business as usual. Most of Chinese factory owners have reported staff shortages during the course of this year and HM Wilkins analysts say China’s COVID policies could be largely to blame for the massive shortfall in labor.

“China’s zero-COVID policy is costing the government dearly,” said James Noble at HM Wilkins Imperial. “These measures are not inexpensive to maintain and there is a real risk of local governments defaulting on their debts. Growing government debt will have threaten the country’s economic health as it affects the government’s ability to fuel growth and stabilize employment.”