China's outdated zero-clearing policy has sadly withdrawn as public dissatisfaction expands.

(AFP)

After 3 years of tossing, the zero-clearing policy has withdrawn sadly

[Reporter Li Qiwen/Comprehensive Report] In the first two years of the epidemic, strict epidemic prevention measures brought huge benefits to China's economy. When the world was plagued by the epidemic, China maintained a low diagnosis rate, allowing it to maintain normal internal business International orders are pouring into China one after another, and exports will increase by more than 20% in 2021.

However, with the end of the 20th National Congress of the Communist Party of China and the white paper revolution blooming everywhere in China, China’s zero-clearing policy has changed drastically, and what followed was not true freedom and unblocking. Since the epidemic prevention measures have not kept pace with the times, years of Coming to China relies solely on extreme lockdowns and nucleic acid testing to curb the spread of the epidemic. While the CCP chose to let go, without supporting measures, it can be said that it directly ruined China's economic prospects.

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In the absence of complete supporting measures, China has significantly relaxed its epidemic prevention policies, which may strain the medical capacity.

(Bloomberg)

Omicron became the straw that crushed China's zeroing

Looking back on 2022, this year’s severe damage to China’s economy can be said to be far beyond the beginning of the outbreak in 2020. The Omicron variant virus with stronger transmission power swept across China. Shanghai announced the closure of the city without warning in March, affecting China’s semiconductor and electronic foundries. Industrial supply chains such as electric vehicles and electric vehicles, as well as the production capacity of Tesla and Apple’s iPhone, have all been impacted. The one-month closure of the city alone, the construction of square shelters, nucleic acid testing and other epidemic prevention costs have caused Shanghai’s direct economic loss of 27.7 billion yuan ( About NT$121.8 billion), not to mention other intangible losses that are difficult to estimate.

As Shanghai announced the unblocking in June, many people breathed a sigh of relief. However, the epidemic situation in China this summer seems to be less optimistic than in previous years. The higher the rate, the greater the threat to the economy. In the second quarter of 2022, China's GDP will only grow by 0.4%. The weak economic data has dampened the confidence of many foreign investors in China and indirectly brewed a wave of foreign investment.

China's repeated blockades in the past have caused long-term anxiety and depression among the local people.

(European News Agency)

China's major cities take over the baton and the economic loss is difficult to estimate

Following Shanghai in September, Chengdu, a first-tier city that had just experienced power cuts and shutdowns, was also closed. As an important transportation hub and consumption center in China, the domestic demand market is under further pressure. Before the 20th National Congress, more will follow The blockade of big cities is like worsening China's economy.

Through strict clearing, China successfully blocked the spread of the epidemic in the short term, but it was replaced by an economic slowdown and increasingly dissatisfied rebound from inside and outside, which evolved into unrest at Foxconn’s Zhengzhou factory and a white paper revolution. However, when The zero-clearing policy was called out halfway without preparation, and China is facing a difficult test of coexistence with the virus.

There is a shortage of medicines across China, and there are long queues in front of pharmacies.

(AFP)

Abandoning zero diagnosis, increasing drug rush, lack of vaccines and more chaos 

China announced 10 new epidemic prevention measures this month, including no longer temporarily adopting lockdowns; narrowing the implementation scope of health codes and nucleic acid testing, and also encouraging home isolation for mild cases, greatly relaxing the previous strict epidemic prevention restrictions, so that China is now ushering in a new wave Infected, the Monetary Fund (IMF) lowered China's economic growth forecast to 3.2%, setting a new low in decades

The World Health Organization (WHO) also believes that China will face a very difficult time after completely abandoning the zero-clearing policy.

Due to the lack of introduction of effective vaccines from the West, the outbreak of drug rush amid the surge in confirmed cases, and the testing of local medical capacity, the number of infections may continue to rise in the face of the upcoming New Year holiday, and worse, it may even cause large-scale deaths.

China currently only allows German nationals living in China to receive the BNT vaccine.

(AFP)

Abandon clearing China's economic outlook with many variables

The recent worsening of the epidemic in China has caused the CCP to postpone the annual closed-door meeting of the central economic work, which may exacerbate the uncertainty of China's economic prospects.

The outside world believes that China's rapid lifting of the epidemic prevention measures will not only cause panic among the public, but will also inevitably have an impact on the economy in the short term. The persistent anxiety and depression of the Chinese people over the past three years have added to the variables for China's economy to return to the right track.

Some economists pointed out that if China abandons the zero-clearing policy, it may take 3 months to half a year to restore the normal life in the past, which means that even if China chooses to relax the epidemic prevention policy at this time, even if most companies will benefit in the future , but it is still difficult to get China out of economic difficulties in the short term.

The substantial relaxation of epidemic prevention measures may have an impact on the Chinese economy in the short term.

(European News Agency)

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