China has an unusual reaction to the Coronavirus pandemic. They are using strict lockdowns in cities and the aim is to have no positive Covid cases at a community level within a district. On the other hand, vaccination is not mandatory and the vaccination rate is low. Of course, the consequence of these restrictions is that economic activity slows from one city lockdown to the next. China is the world's second-largest economy, largest exporter and second-largest importer. When the world's factory closes it has a double impact.
* The Economics Minute is supported by the NWU Business School.
