“Lockdowns in China are already causing disruptions,” economists at Nomura said in a report Friday.
The Chinese economy already was cooling under pressure from unrelated official efforts to force real estate developers and other companies to reduce surging debt that fueled China’s boom over the past two decades. The biggest city in China’s latest lockdowns is Xi’an, a metropolis of 13 million people in the west. It is less significant as a manufacturer than Wuhan, the central city that shut down in 2020 after the first coronavirus cases were spotted there. But Xi’an has factories that make processor chips for smartphones, auto parts and other goods for global and Chinese brands.