German companies doing business in China have expressed concern that the spread of the Omicron variant will trigger tighter sanctions measures that could further add to supply chain problems.
Citing a Reuters report citing a statement from a member of the DIHK executive board in China, told that the country’s strategy to implement targeted sanctions has shown its effectiveness so far.
However, the highly contagious Omicron variant could challenge the government’s zero Covid-19 policy, especially as more Chinese travel to extend the Chinese New Year holidays.
The International Monetary Fund (IMF) on Friday recently urged China to re-evaluate its Covid zero approach following the spread of the Omicron variant.
IMF Managing Director Kristalina Georgieva said the strategy had placed a huge burden on the economy domestically and globally.
Even so, Beijing may not repeal the policy as the vaccines it produces do not have the same rate of efficacy as those shown by mRNA vaccines produced by other western countries, against Omicron.
Ahead of the winter Olympics in Beijing next week, thousands of outsiders will enter the country and potentially increase the risk of Omicron infection. This situation is seen to lead to the implementation of stricter sanctions by China.
