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- China still trying to cope with surge in Covid infections – Rabobank
China still trying to cope with surge in Covid infections – Rabobank
Analysts at Rabobank note that China is still trying to cope with the surge in Covid infections after restrictions were eased.
EU will discuss a joint-policy today
"Some news outlets are reporting a potential peak in new infections, whereas reports of over-full hospitals and morgues paint a much bleaker picture. Some countries have already imposed inbound travel restrictions for passengers from China, and the EU will discuss a joint-policy today."
"The recent surge in Covid infections is not only straining the Chinese health care system. Bloomberg reports that it may now also stifle Beijing’s plans to kick-start a domestic semiconductor industry to compete with US-controlled supply chains. According to Bloomberg, the virus’ impact on the government’s budget forces government officials to reconsider its subsidies for the sector, which have been expensive and have yielded relatively few results."
"It’s yet unclear what alternative policies the government may unveil but new strategies could include lowering the costs of materials, according to the news agency’s sources. This may slow the country’s path towards self-sufficiency in the chip sector, as it seeks to untangle itself from the US – which has increasingly been limiting its strategic rival’s access to key chip resources."
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