China’s zero-Covid stance is inflicting a greater economic cost than 2020

CHINA is headed for a “perfect storm”, and its zero-Covid tolerance is inflicting a greater economic cost than in 2020, when Covid-19 first reared its ugly head.

    With China facing multiple headwinds from Covid-19 lockdowns, property sector woes to geopolitical tensions and severe logistic disruptions, economists have lowered their growth forecast to below Beijing’s target of about 5.5 per cent, and  investors are re-evaluating their exposures to the country.

   Kinger Lau, Goldman Sach's chief China equity strategist, said: “We are in a perfect storm situation where we have a number of economic and regulatory headwinds all going against the market at the same time.”