China’s manufacturing production has dropped for the third month in a row, marking the country’s worst dip in manufacturing activity since the epidemic began in 2020.
According to analysts, the recent revival of Covid-19, which has affected millions, has significantly impacted China’s manufacturing activities. As a result, the monthly purchasing managers’ index declined from 48 to 47 in November.
According to the National Bureau of Statistics, when the indicator goes below the 50-point mark, it indicates that manufacturing activity is shrinking. The present level is the lowest since February 2020, when China imposed stringent lockdowns.
Chinese health experts warned in December that Covid-19 might resurface, potentially impacting 800 million people. According to statistics, the revival will kill millions more people. In addition, industries were affected as the prognosis became more accurate.
It slowed the operations of manufacturing enterprises and other commercial establishments. The growing number of people impacted coincides with the Chinese government’s decision to modify Covid rules in response to widespread demonstrations and reactions against the corporate industry.
“Recently, the deputy director of China CDC, Xiaofeng Liang, who’ s a good friend of mine, was announcing through the public media that the first COVID wave may, in fact, infect around 60% of the population,” said Yale University global health researcher Xi Chen.
“In China, there’s such a large geographic disparity in terms of healthcare infrastructure, ICU beds and medical professionals. Most of the hospitals with advanced treatment technologies are located in Beijing, Shanghai, Guangzhou, and all the big metropolitan areas,” Chen explained.
“This surge is going to come very fast, unfortunately. That’s the worst thing. If it were slower, China would have time to prepare. But this is so fast. In Beijing, there’s already a load of cases and [in] other major cities because it’s spreading so fast,” adds Ben Cowling, an epidemiologist.
“Now in China, the doubling time is like hours. So even if you manage to slow it down a bit, it’s still going to be doubling very, very quickly. And so the hospitals are going to come under pressure possibly by the end of this month,” adds Cowling.
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Suffering for the manufacturing industry
In November, sub-indices such as production and demand in the manufacturing industry fell. While other sectors expanded somewhat in December, manufacturing remained low and even fell within months. Telecommunications, air transportation, and financial services were among the industries that saw growth. However, the index of other sectors outside of manufacturing declined to 41.6 in December of last year.
“Some surveyed companies reported that due to the impact of the epidemic, the logistics and transportation manpower was insufficient, and delivery time had been extended,” said economist Zhao Qinghe.
Because of the manufacturing industry collapse, experts predict that China will miss its 2022 target, with economic growth falling slightly short of the 5.5% target established last year. This would be China’s second poorest economic growth rate since the 1980s. Manufacturing is critical in a country like China, which is home to hundreds of foreign corporations.
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The fight against Covid
Due to the reappearance of Covid in China, the government and health department began another massive push to update residents’ immunizations, particularly those who are immunocompromised or elderly. Workers are strongly advised to get their booster injections as soon as feasible.
With the declining manufacturing industry, employees must obtain a vaccination to defend themselves. As the campaign proceeds, many individuals need clarification about the vaccinations they get.
“The American media has shared a lot of misinformation about the Chinese vaccines. I read both Chinese and English media stories, and I see some news stories, like from Fox News and others, translated into Chinese.” Chen said.
Many individuals assume that Chinese vaccinations do not work as effectively as vaccines created by their Western competitors. However, this needs to be corrected. According to Ben Cowling of the University of Hong Kong, no studies have shown that Chinese vaccinations are ineffective against Covid or its following versions.
“No, that’s not true. Our research in Hong Kong has shown that’s not true. So I don’t have a concern about the effectiveness of the Chinese vaccine.”
Cowling says that people are confusing the vaccine’s efficacy against distinct variations. For example, an early version of a vaccination designed to counteract an earlier form of a certain Covid type might be less effective than a recent booster injection. As a result, Cowling advises factory employees, older persons, and others to acquire updated immunizations for the best protection.
“I’ve never seen any reports of severe side effects with these vaccines,” said epidemiologist Jennifer Bouey, referring to the CoronaVac and Sinopharm vaccines.
“Physicians in China aren’t sure if the vaccines are safe for the elders. So there’s altogether some distrust and confusion about these vaccines – which the government has pushed so heavily. I read quite a lot of misinformation about the vaccine’s side effects on Chinese social media,” she added.
“The government should probably do more to convince people that these vaccines are safe for elders and more vulnerable groups. Because these people not only need the most protection, she says, they need the most shots. The elders and the more vulnerable need more frequent boosters.”
Photo Credit: Florence Lo for Reuters
Source: NPR
Opinions expressed by CEO Weekly contributors are their own.
