COVID embeds in China

Monday 31 October 2022

It sure looks like zero-COVID is slowly but surely being replaced by creeping-COVID in China. Goldman with the note.

The past week has been action-packed for China. The 20th Party Congress and its First Plenum unveiled the top decision-makers who will be in charge for the next five years. Q3 GDP and September activity data highlighted the impact of zero-Covid policy on the economy. China-related assets experienced extreme volatility as investors digested the implications of the Party personnel reshuffling. The recent events and data points offer several takeaways.

First, judging from Xi Jinping’s work report at the 20thnParty Congress, the composition of the new Politburo and Politburo Standing Committee, and the changes made to the Party Constitution, Xi is in complete control in the Party and his focus on security, distribution, and high-quality growth will drive China’seconomic policies for years to come.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.