New COVID-19 cases surged in Guangzhou and other Chinese cities, official data showed yesterday, with the global manufacturing hub becoming China’s latest COVID-19 epicenter and testing the city’s ability to avoid a Shanghai-style lockdown.
Nationwide, new locally transmitted infections rose to 7,475 on Monday, China’s health authority said, up from 5,496 the day before and the highest since May 1. Guangzhou accounted for nearly one-third of the new infections.
The increase was modest by global standards, but significant for China, where outbreaks are to be quickly tackled when they surface under its “zero COVID” policy. Economically vital cities, including Beijing, are demanding more polymerase chain reaction (PCR) tests for residents and locking down neighborhoods and even districts in some cases.
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The sharp rebound will test China’s ability to keep its virus measures surgical and targeted, and could dampen investors’ hopes that its economy could ease curbs and restrictions soon.
“We are seeing a game between rising voices for loosening controls and rapid spreading of COVID cases,” said Nie Wen, a Shanghai-based economist at Hwabao Trust.
Considering how the nationwide COVID-19 curbs are crushing domestic consumption, Nie said he had downgraded his fourth-quarter economic growth forecast to about 3.5 percent from 4 to 4.5 percent. The economy grew 3.9 percent in July-September.
The rising caseload dragged on China’s stock markets yesterday, but shares have not yet surrendered last week’s big gains.
Investors see China’s beaten-down markets as an attractive prospect as a global slowdown looms, and have focused on small clues of gradual change — such as more targeted lockdowns and progress on vaccination rates.
“No matter how harsh the letter of the law is ... there is a little bit more loosening,” said Damien Boey, chief macro strategist at Australian investment bank Barrenjoey.
Guangzhou, capital of Guangdong province, reported 2,377 new local cases for yesterday, up from 1,971 the previous day. It was a dramatic jump from double-digit increases two weeks ago.
Surging case numbers in the sprawling city, dubbed the “factory floor of the world,” means Guangzhou has surpassed the Inner Mongolia city of Hohhot to become China’s COVID-19 epicenter, in its most serious outbreak ever.
Many of Guangzhou’s districts, including Haizhu, have imposed varying levels of curbs and lockdowns, but it has not imposed a blanket lockdown like the one in Shanghai earlier this year.
Shanghai, currently not facing a virus resurgence, went into a lockdown in April and May after reporting several thousand new infections daily in the last week of March.
“We have been working from home for the past couple of days,” said Aaron Xu, who runs a company in Guangzhou. “Only a few compounds have been locked up so far. Mostly we are seeing disruptions in the form of public transit services being suspended and compound security barring couriers and food delivery. And we have to do PCR tests every day.”
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