According to the DIHK Chamber of Commerce, German businesses doing business in China are concerned. They fear that the Omicron would prompt Beijing to impose more stringent lockdown measures. Therefore it would worsen supply chain issues.
In an interview, Jens Hildebrandt, a member of DIHK’s executive board in China, said, “The Chinese strategy with targeted lockdowns has been highly efficient so far.”
However, according to Hildebrandt, the more contagious Omicron variety might put Chinese authorities’ zero-COVID policy to the test, especially as more Chinese nationals travel across the country during the forthcoming holiday season.
Economies and Omicron Hit
Given the highly infectious Omicron form discovery, the International Monetary Fund (IMF) called on China to reconsider its zero-COVID policy on Friday.
The policy involved isolating entire cities with millions of residents. It has progressively proven to be a burden for the domestic and global economies. “The IMF’s critique is not wholly unfounded,” Hildebrandt remarked. However, he noted that Beijing would most likely maintain its zero-COVID policy. He cited scientific evidence that Chinese vaccinations were less effective against Omicron than those from Western countries. The BDI industrial organization mirrored the DIHK’s worries.
According to the BDI’s “Global Growth Outlook,” issued on Monday. “Should the Omicron variant likewise be communicated more quickly and easily in China, this might once again create a barrier for global supply chains, causing a recession in key areas of German industry.”
The Olympic Games are starting next week in Beijing. BDI has warned that tens of thousands of international visitors would flock to the country. Therefore it would raise the risk of Omicron infection and perhaps necessitate tighter lockdowns. According to the paper, this might result in new challenges for producers, exporters, and businesses.