China places millions into Covid lockdown again as economy continues to struggle

theguardian.com:

China has placed millions of its citizens under renewed lockdown after fresh outbreaks of Covid-19 as the government persists in its hardline policy on containing the virus in the face of more evidence that it is suffocating the economy.

The measures affected cities from the southern cities of Shenzhen and Guangzhou to the northern port city of Dalian, and from the western metropolis of Chengdu to Shijiazhuang in central Hebei province.

The lockdown in Dalian was expected to affect about half of its six million residents and was due to last five days, although authorities have in the past extended restrictions depending on the number of new cases.

The Shenzhen district of Longhua, which has 2.5 million residents, closed entertainment venues and wholesale markets on Tuesday, and suspended large events.

Guangzhou, a city of nearly 19 million people near Hong Kong, reported just five locally transmitted infections for Tuesday but authorities ordered certain areas in one district to close indoor entertainment venues and dining at restaurants until Saturday.

The city also ordered all kindergartens and primary, middle and high schools in the district to delay resuming the new term and halt offline sessions that have already started, according to state media reports on Wednesday. Bus and subway services in the district were also reduced.

The closures came as data released on Wednesday showed more signs that China’s economy is being held back by the strict zero-Covid strategy.

The closely watched purchasing managers’ index, a key gauge of manufacturing activity in the world’s second-biggest economy, came in at 49.4 in August, up from July’s 49.0 but still below the 50-point mark separating growth from contraction, the national bureau