China has now taken a "Zero-Covid" policy approach to the ongoing pandemic as they approach the future. Zero-Covid refers to attempts to completely eliminate the virus via public health measures such as lockdowns, mass testing, and border quarantine. With the evolution of COVID-19 and it's new strains forming rapidly, China could see a lockdown for years if all it takes is one case to keep it on lockdown. This will be detrimental to their economy as being closed means being closed to production, trade, employment opportunity, and so much more as we know. China has been moving to boost its economy amid slowing growth. Last Wednesday the country’s central bank, the People’s Bank of China, lowered its benchmark lending rates, lowering corporate and household loans. Will this "Zero-Covid" Policy do just the opposite to the economy? Very likely. Last Thursday, China’s mainland health commission had reported a total of 73 new confirmed cases. It has a seven-day average of 129 cases. Going forward we must monitor how China does with covid cases, while also monitoring their economic performance.
Article : https://www.cnbc.com/2022/01/21/imf-chinas-zero-covid-policy-a-burden-to-domestic-and-global-economy.html
1 comment:
Hello Ian,
This is a very intriguing topic. The reason being is due to our high trade imports with China as it is cheaper to import from other countries than to produce it on our own. This can be due to materials, and labor laws.
It is known that China has been very cautious in dealing with the 2019 Corona Virus but how much is it really affecting us? I would argue a great amount. If China proceeds to go on lockdowns and shut down production plants then we will notice a huge spike in the prices of goods that we import. This is because supply will be limited due to the low amounts of labor that would be able to continue production in China. We must hope that China finds some way to stay open during the pandemic, as we know that COVID will never go away no matter what precautions are taken.
This was a very interesting blog. Good job Ian.
-Ryan Stefancin
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