Growing protectionism and worsening international cooperation could badly damage the world economy, the International Monetary Fund said. Its report, released on the eve of the Davos summit — a paean to free trade and global integration — argues that poorer countries would be hit harder than rich ones. The projections add to continued gloom over economic prospects worldwide, with economists still predicting a recession as likely, despite signs of slowing inflation and hopes that China’s abandonment of zero-COVID could boost growth. [Confronting Fragmentation Where It Matters Most: Trade, Debt ... – IMF]
It is the title of @lemondefr [La Chine abandonne, de facto, sa politique zéro Covid – Le Monde]. On the @nytimes it is highlighted how this can be considered "a success of the protesters". [China Eases 'Zero Covid' Restrictions in Victory for Protesters – NYT]. The newspaper @ChinaDaily explains how procedures change. [COVID quarantine made voluntary – China Daily]
The latest data in the CNBC Supply Chain Heat Map shows China is losing more manufacturing to Vietnam, Malaysia, Bangladesh, India, and Taiwan. Exports in furniture, apparel, footwear, travel goods and handbags, minerals, and science and technology are all declining. China’s ‘Zero Covid’ policy is a big factor, with Port of Ningbo, the world’s largest port, the latest to be impacted. [China, 'factory of the world,' is losing its manufacturing ... - CNBC]
The effect of the pandemic in China, where the intransigent "zero Covid" containment policy imposed in an authoritarian way by the Beijing government continues, is particularly heavy for retail chains. A Reuters dispatch reports that sales fell 0.5%, against expectations of a 1.0% increase and compared to a 2.5% increase in September. On the other hand, the country is missing its annual growth target of 5.5%. A Reuters poll predicts growth of only 3.2% in 2022.
Beijing reduced quarantine times for travelers and close contacts of infected people, lowered the threshold for isolation, and scrapped a penalty on airlines that bring new cases into China. Bloomberg’s comment: “Commodities From Oil to Zinc Soar After China Eases Covid Rules”
China’s stock markets are rising again on rumors that the country may loosen its zero-COVID policy. But no official confirmation has come through. COVID-19 cases hit their highest level since May today, and senior Chinese virologists are concerned about a winter wave driven by a combination of COVID-19 and the flu.
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