What's going on?

Data out on Tuesday showed China�s lockdowns are costing the country $46 billion every month.

What does this mean?

China was one of the biggest success stories of 2020, locking down fast to nip Covid in the bud and get businesses back up and running pronto. But while the rest of the world is now learning to live with the virus, China�s sticking to those no-Covid guns: the government�s been closing down cities from Shanghai to Shenzhen at the first sign of an outbreak. Thing is, economists are estimating that the country�s zero-tolerance policy will cut around 3% off its economic growth every month for as long as it lasts. And if stricter stay-at-home policies spread into towns across the country, that impact could double.

Why should I care?

For you personally: What happens in China doesn�t stay in China.
The policy looks like it might already be taking its toll: data out this week showed that China�s manufacturing sector � a key driver of China�s economic growth � has grown more slowly this quarter than it did the same time last year. And if even more factories end up shutting down at the first whisper of the illness, manufacturing could end up stalling altogether. That would hit you too: China is the world�s biggest manufacturer, and any slowdown could push up the prices of your go-to products even more.

Zooming out: TikTok�s got competition.
China might be looking to less traditional sectors to prop its growth up going forward � namely its tech companies. And there are encouraging signs there, with video-sharing app Kuaishou reporting better-than-expected results on Tuesday. It boasted 22% more monthly users last quarter than the same time the year before, and will be hoping that its expansion into music and sports content will take that one step further.