China reports record number of daily COVID infections

China reports record number of daily COVID infections

China reported a record number of daily COVID 19 infections on Thursday, and local authorities are imposing lock-downs nationwide.

What Happened: According to the National Health Commission, China reported 31,444 new local cases on Wednesday, surpassing the previous peak record of 29,317 on April 13.

On Wednesday, Beijing recorded its fourth death for COVID since last weekend. It has also reported 1,648 local infections.

Lockdowns, mass testing and restrictions have been imposed in cities including Tianjin, Guangzhou and Beijing.

According to official figures, Shanghai has tightened restrictions on visitors, as it has reported 68 new local cases.

The government announced on Thursday that it would convert a major exhibition center in Beijing into a hospital to treat COVID patients.

Earlier this week, protests were erupted at the iPhone assembly factory in China in Zhengzhou, following strict COVID norms and related to unpaid dues.

The country is heading toward economic uncertainty due to rising COVID cases and stricter norms, and China's leadership has stuck by its zero-COVID policy.

Also Read: Jim Cramer says that China's vaccines 'Don't Work' but Xi Won't Admit It

According to a Chinese state media report, the cabinet has announced that it will use cuts in bank cash reserves and other monetary policy tools to ensure enough liquidity.

The consulting firm Capital Economics has reported that more than 80 cities are battling high infection levels, compared to 50 during Shanghai's lock-down. Half of China's gross domestic product is generated by those 80 cities.

In the fourth quarter, the economy of China would shrink by 0.3% compared to the third, according to the chief China economist at Nomura in Hong Kong, Ting Lu. The Wall Street Journal reported that he had cut his forecast for full-year growth from 2.9% to 2.8%.

Economists predict that the country could see further economic disruption if the lock down continues to affect major ports and airports.