One country who refuses to let go of the covid scam, is China; and stocks have started to tumble after, yet another lockdown was announced, this time in the city of Chengdu – a city with over 21 million residents.
The Chinese Communist Party (CCP) is determined to maintain control of the Wu-Flu and is still pursuing a covid-free nation, despite that being impossible to do, especially in a country like China, with a gargantuan population.
Chengdu is located in China’s Western region and authorities have ordered the residents to abide by the “stay at home principle” from 6pm on Thursday – one person only from each household will be allowed out to get essential items, much like the very restrictive lockdowns that came when the pandemic was new.
According to Chinese officials, “The current state of epidemic control is abnormal, complex, and grim,” adding the new lockdown aims to “decisively arrest the spread of the outbreak and guarantee the health of all citizens.”
The rest of the world, however, is quite aware that such measures do not work and in fact, make the situation far worse. China is already in the midst of a water shortage and looking at an energy crisis – any more delays in the supply chain could completely devastate the number two economy in the world.
Shanghai was also subjected to restrictions earlier in the year and the situation became so bad for the residents living there, they began to toss themselves off the balconies of their high-rise apartments.
Chengdu is the capital of Sichuan province and contributes around 1.7 percent to the country’s GDP – being a manufacturing hub, the region produces products for Apple, Toyota Motor Corp. and is home to over 96 companies who specialize in IT, aerospace, machinery and pharmaceutical industries.
Because of the new lockdown, Hong Kong’s Hang Seng Index slumped almost two percent and some US-listed Chinese stocks also took a hit.
According to Bloomberg, analysts weighed in and it was all negative, with Marvin Chen of Bloomberg Intelligence saying, “China’s Covid-zero policy will continue to be a risk for markets and sporadic lockdowns mean any reopening recovery will likely be a bumpy one”
“Local governments may ramp up efforts to contain rising Covid cases ahead of the 20th party congress”
Rebecca Lim of AutoML said, “This worsens the worry of China’s economic slowdown, deepening of property crisis and even contagious to banking crisis if bad-loan continues.”
The “stringent zero-Covid measures have been enforced for more than 2 years and the wider economic environment will have a bigger impact.”
It has not been stated how long the latest lockdowns will last, but residents are not allowed to leave their homes until they have tested negative for covid.