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
The zero covid policy did contain the infection for quite a while in China, but with the new variant, omicron, it will be very difficult for China to keep using this policy because it has a high transmission rate than previous variants. The restrictions they will have to impose to contain this new variant will be very costly and will definitely affect their economy, given the large population. It might to some extent affect supply in the world as China is one of the biggest suppliers in the world.
ReplyDeleteI understand China's way of going about the pandemic, but completely shutting down will do more damage than help. Yes, it may get rid of COVID but new strands come out frequently and the economy will take years to build back up. Lockdowns result in stores running out of simple good such as toilet paper and canned foods. China will not be able to trade with other countries and that is a huge contributor to the GDP. I don't think China should take such severe approaches, even if they mean for the best.
ReplyDeleteAlthough their plan may sound like it will work on paper, it is unrealistic. They would have to remain closed until the rest of the world would take the same risk. I think that they will be able to sustain it until they inevitably get tired of being cooped up in their country with no access to the outside world. I believe that their decision will affect other economies greatly too, including the United States considering how many of our products are "made in China". This decision is a dangerous one, and it will be interesting to see the outcomes unfold in the upcoming months and years.
ReplyDeleteThe rest of the world will be affected by China's Zero Covid Policy because it depends on China for a plethora of resources. This policy will negatively affect the world economy and lead to a collapse because China is an economic giant.
ReplyDeleteIt's understandable what China is doing, but I feel that zero cases is bit extreme. I could only imagine if we had to wait until zero cases, it would take quite some time of misery. New strains of COVID could potentially show to be Chinas economic downfall and even bring them out of this policy.
ReplyDeleteChina needs to make a cost and benefit analysis. Do the benefits from the "zero-covid" policy exceed the cost, or is it a policy that will only hurt the country? Not only China will be affected by this policy, the whole world will be affected because China plays a big part in world trading. I understand that China is looking for the best solution, however I don't think this will bring the best outcome.
ReplyDeleteIt is interesting to see how China is approaching their "Zero-Covid" policy. While I can understand the concern for the increase in Covid cases, I am also concerned with what impact the lockdowns will have. We are already facing supply chain shortages and I think this will only make things worse.
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