China COVID-19 cases rise, with city of Guangzhou on edge

November 11, 2022 China Events & Announcements

BEIJING: China’s COVID-19 outbreak continued to widen on Thursday (Nov 10), with new case numbers at their highest since April and authorities in the hard-hit southern metropolis of Guangzhou urging residents to work from home but stopping short of a city-wide lockdown.

Rebounding COVID-19 infections and China’s aggressive response to them are causing disruption for residents and businesses in cities across the country and weighing on financial markets, including for global commodities.

In Beijing, organisers of China’s flagship auto show said the event, already postponed, will not take place this year due to the COVID-19 situation in the capital, which reported 95 new infections for the previous day, up from 80 a day earlier.

While China’s infection numbers are low by global standards – new domestic cases rose to 8,824 on Wednesday – the country continues to stick with its outlier zero-COVID approach, fuelling widespread public frustration and inflicting damage on the world’s second-largest economy.

In Guangzhou, home to about 19 million people, cases hit more than 2,000 for a third straight day and officials have launched mass testing, resisting for the time being a city-wide lockdown of the type that paralysed Shanghai for two months earlier this year.

“As things stand, it is hard to tell whether Guangzhou will repeat the experience of Shanghai in spring this year. If Guangzhou repeats what Shanghai did in spring, it will lead to a new round of pessimism on China,” Nomura analysts wrote in a Thursday note.

Mason Long, who works for a Guangzhou gaming company, said some residents are bracing for a lockdown, with many leaving the city or planning to.

Most of Guangzhou’s 11 districts are under some form of COVID-19 restriction.

“Panyu district just announced that it’s restricting travel in and out, so that’s three districts to announce that,” Long said. “The rest of us in other districts are super worried this will be applied to the entire city and we’ll be facing a Shanghai-style lockdown.”

Last week, Chinese share prices soared on hopes that China would begin easing COVID curbs, but Beijing continues to reiterate its commitment to what is a signature policy of President Xi Jinping that authorities argue saves lives.

China has yet to spell out an easing strategy or mount the sort of massive new vaccine campaign that experts say is needed before it can begin to open up, with many saying China is unlikely to begin easing until the spring, at the earliest.