The Intelligence from The Economist Unsustainable envelopment goals: China’s zero-covid fight
Jan 21, 2022
Simon Cox, China economics editor at The Economist, shares insights on China's stringent zero-COVID policies and their damaging effects on consumption and growth. He discusses the mounting pressures of the Omicron variant and its implications for upcoming events like the Winter Olympics. Joining him is Simon Speakman-Kordahl, who analyzes the remarkable rise of cycling in the Arab world, emphasizing its potential as a sustainable transport alternative amidst challenges in infrastructure and safety.
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China's COVID-19 Sensitivity
- China reports low COVID-19 cases, but remains highly sensitive to any infections.
- Omicron's spread across several provinces and major cities poses a challenge to their zero-COVID strategy.
Zero-COVID Measures and Impact
- China's zero-COVID response includes lockdowns, mandatory testing, and concerns about the Olympics and Chinese New Year travel.
- The largest lockdown is in Xi'an due to a Delta outbreak, causing significant disruption.
Economic Impacts of Lockdowns
- Lockdowns primarily impact China's consumption, particularly retail, catering, tourism, and travel.
- Supply chain disruptions, like mandatory testing in Tianjin, affect factories, including Volkswagen and Toyota.