BEIJING, (Reuters) – The Chinese port of Tianjin started a fresh round of testing its 14 million inhabitants on Wednesday in order to detect the Omicron variant. Analysts warned that China is facing increasing economic risks from curbing efforts to eradicate coronavirus clusters.

Toyota, the Japanese automaker, said that production at Tianjin joint-venture, which produces 620,000 cars annually, was halted on Monday. This is due to suppliers being subjected to mandatory COVID-19 testing by city residents.

Toyota stated in a statement that it would resume operations once the government has given instructions.

China is trying to keep the Omicron virus from spreading to the public, despite its commitment to a “zeroCOVID” policy. This is happening as Beijing is preparing to host the Winter Olympics beginning February 4.

Games without international observers will be held in “closed loop”.

China has announced that several international flights will be suspended due to the positive results of COVID-19.

Numerous cities in the country are asking people arriving from Tianjin for quarantine. Many encourage travelers to keep their feet on the ground during the Lunar New Year.

Tianjin is located 100km (62 miles) southwest of Beijing and reported 33 coronavirus cases with confirmed symptoms on Tuesday. This was up from the 10 Monday. The Omicron infection was not reported, although there were two other cases this weekend.

LEGISLATIVE POSTPONEMENT

Tianjin gave employees of companies and institutions a half day off on Wednesday and asked them to remain “relatively stable” in order to meet its second round mass testing.

The port’s state-owned manager said that operations were continuing as the employees were being tested.

China will likely see increased Omicron restrictions, Goldman Sachs analysts (NYSE:), stated in a note, revising their 2022 growth forecast from 4.8% to 4.3%. This was due to the potential economic consequences of these potentially more restrictive measures.

Analysts Morgan Stanley (NYSE) said that they also saw downside risks to their first-quarter forecast for world’s second-largest economic country this year. Omicron could have “more costs than benefits,” according to China’s COVID Zero strategy.

Omicron was also detected in Henan’s central province. Anyang reported 65 cases of Omicron symptoms on Tuesday. That is an increase of just two days earlier.

The Omicron infection rates in Tianjin are small compared to those in other countries.

However, Tianjin made it more difficult for residents to move out of the city, and Anyang told them to stay indoors for mass testing.

Mainland China has reported 166 local symptomatic patients on Tuesday. This is more than the 110 cases that were reported a day prior.