For many months after the COVID-19 outbreak devastated China’s Wuhan region in 2020, everybody thought that the horror was over. But as for now, in the middle of 2021, the Asian country is once again confronting a surge in coronavirus infections, according to stats from worldometers.info.
Funny enough, China is in 107th place within the ranking of countries affected by COVID. We’re talking about the same country where the first COVID infections in the world occurred. As for now, China sees itself forced to reimpose a lockdown to stop the spread of the virus.
The stock markets will be affected
The veteran strategist David Roche warns about China’s recent restriction measures imposed to stop the coronavirus surge. He warns that the country’s economic growth and stock markets and, therefore, the economic growth of the world could be affected, according to CNBC.com.
Roche declared for CNBC’s “Street Signs Asia”, as quoted by CNBC’s website:
Markets have got into the mode of thinking Covid is very … bad, but economic recovery (is) taking away lockdowns, removing social restrictions — that’s kind of the world recipe at the moment,
Well it’s very much not the world recipe in China for good reasons, and therefore markets have to come to terms with the fact that there are economic costs not only within China, but globally as a result of this.
According to Chinese state media, the recent surge in COVID cases from the country is linked to the highly transmissible Delta strain that was discovered in India.
Roche also believes that any disruptions in the Chinese economy could also affect global economic growth. Global supply chains could be interrupted in the case of broader lockdowns in China. Therefore, international trade could be affected, prices for some goods would go up, and more.