Lockdowns reimposed across China
Despite evidence that widespread lockdowns are suffocating production and consumer spending, there are no signs of the central government in Beijing relaxing its zero-covid policy.
In the last week millions of citizens have been subjected to lockdowns and compulsory testing in cities including Shenzhen, Guangzhou, Dalian, Shijiazhuang and Chengdu.
In 2021, the China Leather Industry Association (CLIA) reported that Hebei province was the most productive for what it terms light leather, with a number of important tanneries in the area around Shijiazhuang. This year, however, covid restrictions combined with a severe drought, searing temperatures, and power restrictions due to water shortages have reduced economic activity in this important tanning region.
In Chengdu, the authorities refused to give residents permission to leave their homes even after an earthquake struck on September 5, causing more than 70 fatalities in the surrounding region.
Outbreaks in Shanghai caused the All China Leather Exhibition (ACLE) to be postponed from the end of August and rescheduled for December 20-22.
The closely watched purchasing managers’ index (PMI), a key gauge of manufacturing activity, came in at 49.4 in August, up from July’s 49.0 but still below the 50-point mark separating growth from contraction, the National Bureau of Statistics said.
According to Capital Economics, 41 cities, responsible for 32% of China’s GDP, are currently in the midst of covid outbreaks, the highest number since April. Covid lockdowns around China have dampened consumer enthusiasm and undermined business confidence.
