China has tightened Covid-19 measures to combat an uptick in daily cases — a move that could hold back the country’s economic growth and hit its stock markets
The country’s National Health Commission reported 143 new Covid cases in mainland China on Monday — the highest number of daily infections since January, according to Reuters. Chinese state media attributed the latest resurgence in infections to the highly transmissible delta variant.
Chinese authorities last week ordered mass testing in Wuhan city — where the coronavirus was first detected — and imposed widespread movement restrictions in major cities including Beijing.
What is China’s effect on global economy?
Any disruptions in the Chinese economy could affect global economic growth. Broader lockdowns across China could interrupt global supply chains — much of which are located in the country that could hit international trade, increase the costs of some goods, and raise inflation expectations around the world