New China Lockdown Hits 21 Million People In Chengdu Amid ‘Zero Covid’ Push

Topline

Chinese officials will lock down the city of Chengdu on Thursday in an effort to curb the spread of Covid-19, confining millions to their homes and closing business in one of China’s largest and most economically important cities as Beijing pushes ahead in its solitary and dogged pursuit of “zero Covid.”

A medical worker tests for Covid in Chengdu, China.

China News Service via Getty Images

Key Facts

Chengdu, capital of the south-western Sichuan region, will lock down more than 21 million people living in the city from 6 p.m. on Thursday after reporting nearly 800 Covid-19 cases this week.

Officials also announced mandatory Covid testing throughout the city, one of the only reasons residents will be allowed to leave their homes.

The lockdown will shutter all nonessential businesses in Chengdu, a major blow to local and foreign firms based in the city including Toyota, Intel and Foxconn, one of Apple’s major suppliers.

One person from each household will be allowed to shop for groceries and other necessities each day but residents must seek permission for other urgent matters like seeking medical care.

Officials did not state when the lockdown will lift or what factors will be used to make the decision to ease restrictions.

Chengdu’s lockdown comes on the heels of harsh restrictions imposed on other cities to curb the virus, including placing millions under lockdown in Dalian and Shenzhen, tight curbs in Guangzhou and mass testing for more than 13 million people in Tianjin.

What To Watch For

The impact of China’s Covid-19 lockdowns on U.S. economic recovery. China is a global manufacturing hub and disruptions caused by lockdowns ripple through the global economy. Earlier lockdowns hit several major U.S. companies hard, including giants like Tesla and Apple, and business leaders like Elon Musk have complained of “supply-chain hell.” Some experts, including Federal Reserve officials, warn more disruption in China could reverse recent economic gains in the U.S. and delay getting back to normal.

Key Background

Chengdu is the largest city-wide lockdown imposed in China since Shanghai. Shanghai, a financial powerhouse and home to some 25 million people, endured a brutal two months of lockdown during which residents struggled to obtain basic necessities like food and medicine. The decision to shut the city down underscores Beijing’s unwavering commitment to “zero Covid” as President Xi Jinping prepares to take a third term in power. Snap, city-wide lockdowns, compulsory mass testing—including with anal swabs and tests on live seafood—and strict social isolation have become hallmarks of the approach and measures are sometimes triggered over a mere handful of cases. China is one of the few countries in the world still pursuing a policy of viral elimination and many like-minded countries like Australia, New Zealand and Singapore have long abandoned the approach as unworkable and unattainable. Even Hong Kong, which is aligned with Beijing’s strict policies, now pursues a less stringent approach to zero Covid.

Tangent

The lockdown is the latest blow to befall the people and businesses of Chengdu this summer. Extreme heat and low rainfall led to severe power shortages as electricity demand for air conditioning spiked and reservoirs across the province dried up. Sichuan, which relies heavily on hydroelectric dams for its power, limited energy use for industry, including implementing rolling blackouts and some factories had to halt operations. Chengdu dimmed lights in public areas to save power and power supplies were rationed for private business owners. Forecasters expect the hot conditions will continue into September.

Big Number

2.5 million. That’s how many confirmed Covid cases there have been in China since the start of the pandemic, according to Johns Hopkins University. Nearly 15,000 have died with the disease in the same period. China, the world’s most populous country, has a population of more than a billion people and critics believe official statistics belie the extent of outbreaks in the country.