China's economy braces for turmoil as Covid curbs ease, infections surge

The government's abrupt abandonment of its long-held Covid Zero strategy has made the outlook for the economy very uncertain as factories brace for disruption and labor shortages rise

China’s economic activity weakened in November before the government abruptly dropped its Covid Zero policy, with a surge in infections in coming months likely to cause more turmoil and push policymakers to increase stimulus. 

Key data released Thursday showed business and consumer activity slumped to their weakest levels since the Shanghai lockdown in the spring. Retail sales and home sales declined, while industrial output and investment slowing sharply. Unemployment rose, notably for the country’s most vulnerable workers.  

The government’s abrupt abandonment of its long-held Covid Zero strategy has made the outlook for the economy very uncertain as factories brace for