China’s economy begins to reopen after 3 years of Covid isolation
Beijing’s streets are once again jammed with traffic, tourists are rushing to book foreign holidays and businesses anticipate a pick-up in activity as China’s economy reawakens from three years of coronavirus restrictions, even as the country endures its worst outbreak of the pandemic.
While China remains submerged in an unprecedented wave of the virus, with tens of millions infected daily, the world’s second-largest economy is starting to show signs of coming back to life following the decision this month to abruptly dismantle the draconian zero-Covid system that sought to control the virus at the cost of keeping the country isolated.
Investors and analysts predict a brighter year ahead after Covid disrupted supply chains and forced stoppages on factory floors, as the economy recovers and begins to reconnect with the rest of the world. Demand for international travel is expected to surge when centralised quarantine for arrivals ends on January 8 and China allows citizens to renew expired passports.
Iris Pang, chief China economist at ING, suggested that the “timing is not perfect” for China’s reopening because of the risk that a US and European recession would hit demand for goods.
Hua Yifan, a manager at Jiaxing-based clothing manufacturer Shanhui Dress, said that production at his factory had been shut down because of supply shortages and sick workers.
“But I still remain confident,” he said. “If we can get through the winter, the temporary shutdown will not be a big deal.”
Ryan McMorrow and Xinning Liu in Beijing, Thomas Hale and Sun Yu in Shanghai, Leo Lewis in Tokyo and Gloria Li in Hong Kong
This story originally appeared on: Financial Times - Author:Gloria Li
