The impact of the Zero-COVID policy implemented in China since the start of the pandemic is complex and multi-faceted. This policy aims to completely eliminate the SARS-CoV-2 virus, but the results have various significant and long-term economic consequences. One of the main impacts of this policy is a reduction in economic growth. Strict mobility restrictions and lockdowns have resulted in many companies, small and large, experiencing temporary or even permanent closure. Businesses that depend on direct interactions with customers such as restaurants, hotels and the tourism sector have been particularly hard hit. According to official reports, China’s economic growth contracted for the first time in more than 40 years in the second quarter of 2022. The Zero-COVID policy also disrupted global supply chains. China, as the world’s factory, plays an important role in the production and supply of goods to various countries. Strict restrictions result in delays in delivery of goods and increased logistics costs. This has led to inflation in many countries, especially those that rely heavily on imports from China. China’s manufacturing sector is having difficulty meeting demand, shifting focus to survival rather than growth. Apart from that, consumerism in the country is also affected. Economic uncertainty and frequent lockdown policies have made people more careful in spending. People’s purchasing power has decreased, which has an impact on demand for goods and services. E-commerce sales, which had boomed during the pandemic, are showing signs of stagnation as the government tightens travel rules. The Chinese government has tried to implement various stimuli to improve the economy, but the impact of the Zero-COVID policy is still being felt. Many analysts think the recovery will take longer and depend on future policy flexibility. Reliance on virus control policies is also in the spotlight, as it hampers the ability of society and businesses to adapt to rapidly changing global market dynamics. The labor sector also experienced a significant impact. Many workers lost their jobs or had their working hours reduced. With an already overburdened labor market, wages are stagnant and unemployment rates are rising, reducing overall household income. Additionally, China’s younger generation is feeling tremendous pressure to find work, with the unemployment rate among university graduates reaching its highest level in decades. Furthermore, foreign investors have become wary of China’s economic stability. High uncertainty in government policy makes many investors choose to hold their investments, while others look for alternatives in other countries. This can slow down innovation and technology transfer that are vital for long-term economic growth. Overall, China’s Zero-COVID policy does not only affect the health sector, but permeates every aspect of the economy. The transition from strict policies to economic recovery requires a more balanced approach, to ensure that sustainable growth can be achieved without compromising public health.