China’s COVID case numbers have climbed sharply since March 2022 with the emergence of Omicron and its subvariants. Its continued adherence to a zero-COVID strategy and consequent reimposition of restrictions on mobility and activity have had a significant negative impact on Chinese domestic activity.
The disruption to manufacturing operations and shipping ports have added further pressure to global supply chains.
China is New South Wales’s largest source of imports; the disruption to Chinese production and supply chains will lead to further inflationary pressure for the State’s economy.
China is unlikely to abandon its zero-COVID strategy in the near term. That said, the easing of restrictions in Shanghai shows that the government is willing to compromise between achieving its growth target and reducing the number of COVID cases.
