Letter from China: Covid resurgence compounds economic concerns

China’s economy faces headwinds that go beyond than the arrival of the Delta variant

China’s worst Covid-19 outbreak since the virus first emerged is adding to the growing list of challenges facing the country’s economy, raising concerns about a slowdown in growth that could have consequences for domestic energy demand. The central city of Wuhan—synonymous with the coronavirus when the pandemic started 18 months ago—detected three new cases on Monday, which were the city’s first since May 2020. The cases add to an increasingly severe outbreak of the Delta variant that started at an airport in the eastern city of Nanjing last month and has now spread to more than 20 cities in nearly half of China’s 31 provinces. 7.9pc – China’s below-forecast April-June GDP growth Whi