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Tourism in some smaller cities could take a hit in August, usually a peak travel season due to the summer school break. We were officially told to stop operations today, and all our employees didn't come to the factory." "In the past few days, many places have been gradually locked down. "We cannot deliver goods because the delivery firm informed us that they've suspended their services," said a manager of a toy factory surnamed Wang. Many factories and logistics firms in the city of 5 million have been shut as employees joined queues of people to get tested, some up to three times a week. Yangzhou, near Nanjing, has been battling rising coronavirus cases since last Wednesday. Of course, doing so will come at some economic cost." "But given the country's track record in dealing with the virus so far, our assumption is that they will quash the outbreak before it gets out of control. "The Delta variant is the biggest test of China's zero-COVID strategy since the initial outbreak last year," said Julian Evans-Pritchard, senior China economist at Capital Economics.
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It grew more slowly than expected in April-June, due to persistently high raw material prices, cautious consumer spending and a subdued real estate market. Policymakers are under pressure to ensure that while populations are protected, economies are not excessively strained.Ĭhina's overall economy is not invulnerable. Many cities have warned against non-essential travel, required proof of negative tests for those who do travel, and launched mass-testing for the virus. The emergence of the variant, which is more transmissible than the original strain first detected in the city of Wuhan in late 2019, has seen the return of tough counter-epidemic measures. Jiangsu, the province with the second-largest economic output after Guangdong in 2020, is by far the worst-hit, accounting for about 80% of the confirmed cases. It was not immediately clear whether Nanjing was the source of all the infections, as some authorities have yet to disclose the outcome of their virus-tracing efforts. The tally of locally transmitted cases stood at 353 as of Sunday. Since Nanjing confirmed its first Delta cases on July 20, numerous cities in southern China and a few in the north including Beijing have reported infections. The infections were traced back to a flight from Russia. BEIJING: The Delta variant poses new risks for the world's second-biggest economy as it spreads from the coast to China's inland cities and presents fresh challenges to authorities who have for months managed to avert any widespread outbreak of the coronavirus.īarely a month after disrupting industry in the southern export hub of Guangdong, cases of the Delta variant were detected in Nanjing, capital of Jiangsu province on the coast.