Beijing ' s short-term measures to combat coronavirus outbreaks within the framework of the zero tolerance policy for COVID have led to a significant slowdown in China ' s economy. Owing to the severe sanitary restrictions imposed by the authorities, large Chinese technology companies have significantly reduced sales, resulting in the worst quarterly growth rate in their history.
Alibaba's e-commerce giant, for the first time in his history, did not have an annual increase in revenue per quarter, and Tencent, the owner of WeChat and one of the world's largest players, reported the first ever drop in sales.
JD.com, the second largest e-commerce company in China, reported the lowest income growth in its history, and the manufacturer of Xpeng electric vehicles reported larger than expected losses per quarter, and provided a weaker forecast for the next quarter, promising between 29,000 and 31,000 cars.
In the last quarter, China experienced an increase in coronavirus cases, and in the fight against the pandemic, the authorities introduced elbows in major cities, including Shanghai, which lasted several weeks, and conducted mass testing of the population.
China's economy grew by only 0.4% in the second quarter, affecting consumer demand as well as companies' spending on advertising and cloud computing.