New Wave of Corona Threatens to Shut down 20% of Chinese Economy

China announced, on Thursday, a record number of "COVID-19" infections, when cities across the country are witnessing local closures and other restrictions that cast a shadow over the outlook in the world's second-largest economy.

However, Nomura analysts estimate that more than 20 percent of China's GDP is in lockdown, exceeding the size of Britain's economy.

The rise in infections to record levels has diminished investors' hopes that China will soon ease its strict "zero COVID" policy, which, along with the contraction of the real estate market, casts a dark shadow over the economy.

The restrictions have also hurt an increasingly frustrated population, as well as on production in factories, including the world's largest iPhone factory, which has seen violent clashes between workers and security personnel in a rare expression of discontent.