China: activity in services plunges in November due to health restrictions

The zero-Covid strategy imposed by the authorities for nearly three years is weighing heavily on service activity.

REUTERS - THOMAS PETER

Text by: RFI Follow

1 min

In China, the zero-Covid strategy imposed by the authorities for nearly three years is weighing heavily on service activity.

This collapsed in November, particularly in tourism, hotels and restaurants and transport, despite the recent relaxation of certain restrictions.

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This is a much stronger collapse than expected.

The PMI purchasing managers' index stood at 46.7 points in November, against 48.4 in October.

When this index, allowing to know the economic state of the sector, is lower than 50, it means a contraction of the activity. 

Since September, in fact, the service sector has continued to deteriorate.

In question, multiple outbreaks of Covid-19 which have affected China.

In November, the number of cases reached record levels since the start of the pandemic.

Result: companies have experienced their largest drop in production for six months.

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China continues to apply a strict zero-Covid policy, so dear to President Xi Jinping, even if it has been partially relaxed, in particular after unprecedented demonstrations by residents expressing their

.

In Beijing, many stores have been able to reopen, and residents can use public transport without having to present their PCR test. 

Finding a balance between control measures and economic growth has once again become a central issue for the Chinese authorities, experts say.

But the way in which the local authorities will or will not apply these instructions will be decisive. 

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• China

• Coronavirus

• Economy