“Lockdown risks, therefore, continue to rise in China, even as they decline elsewhere,” Frédérique Carrier, head of investment strategy at RBC Wealth Management, told the Wall Street Journal Feb. 14. “Increased pandemic restrictions could lead to additional supply chain disruptions, hold back the normalization of the global economy and fuel global inflation, while capping Chinese economic growth.”
While there have been signs that disruptions are easing, prolonged outbreaks in China could reverse the global progress that has been made. An official familiar with the matter told the Journal China is working to develop domestic mRNA vaccines and COVID-19 medications to make the need for lockdowns “less pressing,” but the newspaper reported that few see the shift from “zero-COVID-19” policies occurring soon.
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