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China risks falling behind U.S. growth rate as lockdowns take toll

Japanese companies struggle to deal with fallout from Beijing's zero-COVID policy

Workers in protective suits ride electric tricycles and scooters during lockdown in Shanghai.   © Reuters

BEIJING -- China's zero-COVID policy is putting increasing strain on business activity, with some analysts warning the nation's economy could see real growth for 2022 only in the 3% range, possibly putting it behind the U.S. level.

The monthlong-plus lockdown in Shanghai is the epicenter of the economic disruptions. New infections are declining, but more than 40% of residents are still prohibited from leaving their homes, disrupting logistics. In the manufacturing sector, new orders and production declined, while prolonged procurement times for parts and raw materials have taken a toll.

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