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By stringent lockdowns, China squashed the Covid-19 pandemic in 2020.

A Russian brought the delta variant to China a short time ago and it has spread.

After Months as a Covid Success Story, China Tries to Tame Delta

The government has imposed lockdowns and is testing and tracing aggressively to fight a new outbreak. Experts say it is time for the country to rethink its approach to the virus.

By Sui-Lee Wee and Elsie Chen, The New York Times, Aug. 4, 2021

China is facing its biggest challenge since the virus first erupted in the Chinese city of Wuhan last year: the highly transmissible Delta variant that is rapidly spreading throughout the country. Chinese officials have acknowledged that curbing this outbreak will be much harder than the others, owing to the fast and asymptomatic spread of the variant....these new outbreaks are happening in cities such as Nanjing, Wuhan, Yangzhou and Zhangjiajie ...

Since the current Delta outbreak started on July 21, the number of cases has risen to 483, more than the sum total of infections from the first five months of the year. By Tuesday afternoon, the virus had spread to 15 of the 31 provinces and autonomous regions in China...Part of the challenge for Beijing is that the Chinese-made vaccines being used to immunize the country are not as effective against the Delta variant as other shots. ...
[end quotes]

According to the PBS Newshour, China is locking down and mass testing everyone in the affected cities -- millions of people. They are desperate to keep Covid-19 out of Beijing and have thrown a no-entry cordon around that giant city.

These stringent measures may have macroeconomic impact by intefering with supply chains for products that are manufactured in the U.S. and other countries.

The markets may react strongly to this bad news tomorrow. Although the situation has been going on for a couple of weeks, it was just reported today.

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