China is going through its biggest coronavirus outbreak amidst all the measures and precautions. Despite the extended lockdown, Shanghai faces its highest cases in a single day. The state is also submerging in its economic crisis and disrupted supply chain.
Shanghai, China’s financial hub with over 25 million people engaged in business, recorded 26, 087 new cases on Sunday, the highest in the pandemic. The weeks-long lockdown has enraged the citizens as they are struggling to meet their basic ends of food and medicines.
Following Shanghai, the southern metropolis of Guangzhou is imposing new guidelines and restrictions as 20 new Covid cases have been registered by their local authorities. According to them, the new cases might be the ‘tip of the iceberg’. The city is another financial hub of China and constant restrictions on all the trading points must hamper the growth and lead to inflation in the world’s second-largest economic hub.
The head of research at Oversea-Chinese Banking Corp, Tommy Xie, wrote in a report on Monday, “The Chinese economy may have to brace for more short-term disruptions in the coming months.” He also stated that with Shanghai struggling with the corona outbreak, local governments may start enforcing restrictions even when the cases are low.