China Faces Long-Term Damage From Delta Outbreaks

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China Faces Long-Term Damage From Delta Outbreaks
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Heard on the Street: China is dealing with its second significant Delta variant outbreak within the past few months. The real worry is what lies ahead.

in neighboring Zhejiang. China is battling its second outbreak of the hyper-contagious delta coronavirus variant since late spring. The latest wave, which apparently began at the airport in the Jiangsu provincial capital of Nanjing, has spread to more than half of China’s provinces.as tourism withers again and exporters face new logistics bottlenecks during the peak late-summer season. Goldman Sachs has cut its 2021 growth estimate to 8.3% from 8.

China may well bring this latest wave under control—as it has all the others—with a potent combination of mass testing, targeted lockdowns, quarantines and contact tracing. But what is now becoming clear is that this cat-and-mouse pattern could go on for a long while, meaning repeated rounds of damage to consumers and exporters every time there is a new outbreak and the nation’s containment apparatus jumps into overdrive.

For now the country remains firmly committed to a “zero-tolerance” posture toward the virus, with trial balloons on a less restrictive policy from a few well-known Chinese public health experts prompting firm pushback in state media from the likes of China’s former health minister Gao Qiang. Given

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