Surge in Covid cases in China rattles markets. What is going on?

The resurgence of Covid in China has led to fears that lockdowns could derail the global economic recovery. Saloni Sardana explains what is going on and how it affects the global economy.

Covid testing in Beijing
Beijing has imposed mandatory Covid testing for anybody working or living in the district of Chaoyang
(Image credit: © Kevin Frayer/Getty Images)

Just over a month ago the resurgence of Covid in China sent shockwaves around the world and fears mounted that lockdowns could derail the global economic recovery.

Events in China this weekend did little to dampen those fears, with Beijing warning that Covid was spreading undetected and cases would spiral further, which caused a steep sell-off in global markets on Monday.

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni