China’s manufacturing activity shrank for the third straight month after Beijing reversed of anti-virus measures and Covid infections swept through factories. Several other cities and provinces are also seeing tens of thousands of new cases per day. Analysts said surging infections could cause temporary labor shortages and increased supply chain disruptions. The Chinese economy was already struggling before this new Covid surge. Looking ahead, weakening external demand on the back of growing global recession fears amid rising interest rates, inflation and the war in Ukraine may further slow China’s exports, hurting its massive manufacturing sector and hampering an economic recovery.