tirsdag 11. januar 2022

China could stay shut for all of 2022: Goldman Sachs

China could retain its tight border restrictions for the whole of the year as it prepares to host the Winter Olympics and a series of political events in 2022, Goldman Sachs Group Inc. said. Reports that vaccines made by domestic firm Sinovac Biotech Ltd. offer limited protection against the omicron variant will likely reinforce China’s resolve to stick with its Covid Zero strategy, analysts led by Andrew Tilton wrote in a note Tuesday.

China is one of the few countries in the world that’s still committed to the Covid Zero approach, while many others have shifted toward living with the virus. Strict measures to contain outbreaks — like the hard lockdown in Xi’an currently — have led to disruptions to production and travel, and a slump in consumption, adding pressure on an economy already weighed down by a housing market downturn.