China's factory activities slide to 7-month lows as COVID-19 pushes nation into lockdown

The surge of the coronavirus cases in China has impacted the country’s factory activities and sent it into a dwindling trajectory. According to the BBC, the Purchasing Managers' Index (PMI) of China plunged from 49.2 in October to 48 in the month of November. The PMI is an indicator of a country’s economy which is extracted from monthly surveys.

China also experienced a drop in the non-manufacturing PMI, which assesses sectors like construction and services. The PMI fell from 48.7 to 46.7 within a month, thus becoming the lowest reading in the past seven months. It is important to note that any figure lesser than 50 signifies a contraction in comparison to the previous month.

However, China’s government has taken cognizance of the country’s shrinking economy and has put forth measures to combat it. Last week, China's central bank made a change to its reserve ratio in order to boost the real estate sector. The drop in China’s factory activity comes as the coronavirus takes over the country, pushing it into strict lockdowns and mass testing. On Tuesday alone, 37,000 cases were reported across the country, a figure that transcends the peak witnessed in the month of April. 

Chinese citizens furious over strict lockdowns

As Xi Jinping’s government attempts to curb the spread by adhering to the stringent zero-Covid policy, citizens have taken to the streets to hold protests out of frustration and anger. Over the last weekend, a slew of protesters called for Jinping to step down as the president and put an end to the harsh lockdown measures.

Earlier on Tuesday, health officials from China's National Health Commission (NHC) assured that the authorities will attempt to lessen the "inconvenience" created by the pandemic. NHC spokesperson Mi Feng addressed reporters and said that the lockdowns should be "imposed and eased quickly" and that "excessive control measures should be continuously rectified."