SIMONE DEL ROSARIO: THREE YEARS IN, PEOPLE IN CHINA ARE FINALLY FEELING FREEDOM FROM THE COUNTRY’S MOST RIGOROUS COVID PROTOCOLS.
BUT SOME WORRY THAT FREEDOM WILL SEND COVID CASES SURGING (IT ALREADY HAS), PUTTING PRESSURE ON SUBPAR HEALTH CARE SYSTEMS AND STALLING BUSINESS WHEN TOO MANY PEOPLE ARE SICK. AND WHAT THEN HAPPENS TO THE WORLD’S NUMBER TWO ECONOMY?
BEFORE THE NEWLY-ANNOUNCED REOPENING (WHICH CHINA CLAIMS HAS NOTHING TO DO WITH WIDESPREAD PROTESTS), ECONOMISTS EXPECTED GROWTH TO START PICKING UP. NOW, ECONOMISTS SAY IT’LL LAG BEHIND EXPECTATIONS, SIGNIFICANTLY MISSING ITS TARGET OF 5.5% FOR THIS YEAR, AND DRAGGING FOR THE FIRST HALF OF NEXT YEAR.
RIGHT NOW ECONOMISTS EXPECT CHINA’S GDP TO GROW 3.2% IN 2022, THE SLOWEST RATE OF GROWTH SINCE THE 1970S EXCLUDING 2020.
XI JINPING’S COVID-ZERO PIVOT HAS CAUGHT THE COUNTRY BY SURPRISE. BEIJING IS REPORTEDLY ALREADY RUNNING OUT OF EVEN THE MOST BASIC MEDICAL SUPPLIES, LIKE IBUPROFEN, WHILE NEW MODELING ANALYZED BY THE FINANCIAL TIMES SHOWS CHINA RISKS A MILLION COVID DEATHS WITH A WINTER WAVE.
CHINA’S FAILURE TO FULLY VACCINATE MILLIONS OF ELDERLY CHINESE AND ITS REFUSAL TO USE MORE EFFECTIVE MRNA VACCINES IS IN SHARP FOCUS NOW AS IT TESTS REOPENING.
WHILE COVID ZERO CLEARLY HARMED CHINA’S ECONOMY, THE ABANDONMENT AHEAD OF A WINTER SURGE IS FUELING UNCERTAINTY AROUND ASIA’S POWERHOUSE.
I’M SIMONE DEL ROSARIO IN NEW YORK IT’S JUST BUSINESS.