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Why China’s Economy Faces a Perilous Road to Recovery


Many European manufacturers in China have been forced to operate with about half their usual staff for two to three weeks, affecting output somewhat, said Klaus Zenkel, the chairman of the chamber’s South China chapter. As a precaution against lockdowns, many companies had accumulated spare parts in warehouses before the Covid wave and have relied on those to keep running.But to save on costs, a few small suppliers of specific components have stopped operations early for the Lunar New Year holiday, which starts on Jan. 21. “Everyone managed a way to continue somehow, to keep the damage at a minimum,” Mr. Zenkel said.The damage that “zero Covid” …

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