New Analysis China’s zero-tolerance approach toward COVID-19 has resulted in continued city lockdowns, which exacerbated production and shipping congestions across the globe. Experts warn that Beijing’s extreme—and stubborn—measures to contain the virus could be the greatest risk facing the world in 2022. In a January report, U.S. political risk analysis and consultancy firm Eurasia Group listed China’s zero-COVID policy as the world’s top risk going into 2022. The report (pdf) predicts that Beijing’s zero-tolerance approach toward the highly transmissible Omicron variant will ultimately fail, leading to larger outbreaks, requiring more severe lockdowns; and in turn, result in more state intervention and greater economic disruptions. China’s problems add to supply chain disruptions, which will present ongoing risks worldwide, the report said. Its COVID-clearing policies will cause shipping constraints, and shortages in staff, raw materials, and equipment, followed by reduced availability of goods around the globe. Katrina Ell, a senior economist for …
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