Workers in protective gear at a neighborhood placed under lockdown due to Covid-19 in Shanghai, China, on Monday, Nov. 7, 2022. Chinas daily Covid cases jumped to the highest in more than six months, as outbreaks flared across the nation and health officials declared the nation will stick with its strict virus controls. Photographer: Qilai Shen/Bloomberg via Getty ImagesPictured here is a Shanghai neighborhood under Covid lockdown on Nov. 7, 2022.

The Covid situation in China is getting worse, making it difficult for the country to relax controls.

Over the weekend, the daily case count increased to its highest level in six months. The auto show in Guangzhou was going to start next week. According to social media, schools in Beijing are wrestling with the issue of online classes.

China's Covid controls negatively affected 12.3% of national GDP as of Monday, up from 9.5% a week ago. More than 20% of China's population is subject to some kind of control measures, according to the Japanese bank.

Cases are concentrated in one district in the southern province of Guangdong. More than 20 of China's 31 provinces have recent Covid infections.

Klaus Zenkel, vice president at the EU Chamber of Commerce in China and chairman of its South China chapter, said that a lot of business events have been canceled.

People don't want to travel. He said that companies from Guangzhou and Shenzhen would not be able to attend the import expo in China. When we can't meet face to face, how can we maintain our customer relationships?

It wasn't clear if there was an impact on factory production. CNBC requested comment from China's Ministry of Commerce, but they did not reply.

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During a week in which many investors believed that China would relax its Covid policy, the impact of Covid on China's economy increased.

At a press conference on Saturday, officials said that the current zero- Covid policy is still in place.

Beijing may fine-tune some of its Covid measures in the coming weeks, but we think that local officials will tighten the zero- Covid strategy.

There were more than 800 Covid infections in mainland China on Monday.

Some countries have higher daily case counts than others.

Chinese authorities are concerned about the ability of the country's healthcare system to deal with a surge in infections.

Why China shows no sign of backing away from its 'zero-Covid' strategy