TAIPEI (Taiwan News) — China’s efforts to keep the new coronavirus strain out of its borders have failed, with the country reporting its first case of the Omicron variant in the coastal city of Tianjin on Monday (Dec. 13).

The timing and location of the new case are not ideal for China’s leadership. Tianjin is right next door to Beijing, which is due to hold the Winter Olympics in a matter of weeks.

The news coincides with an expanding cluster of cases of the Delta variant in another coastal province, Zhejiang. The outbreak has seen at least a dozen publicly traded companies immediately suspend production in the province, according to a Guardian report.

Public health experts concur the new strain poses the greatest threat yet to Beijing’s goal to defeat the virus through tough measures. Though most national governments around the world are edging toward plans to coexist with the virus, China has stuck steadfastly to its zero-Covid strategy.

The Economist has predicted the Chinese economy will be hit particularly hard by the Omicron wave. The magazine said continued restrictions on international travel will do immeasurable damage to future innovation, which relies to a great extent on the cross-border flow of ideas.