Below trend growth to continue
Dynamic clearing – shifting the message rather than broad policy towards COVID-19.
Since the start of the COVID-19 pandemic, China has adopted one of the most stringent approaches to managing outbreaks – implementing mass testing and strict lockdowns to effectively eliminate instances of the virus. This approach has generally been described as “zero COVID”. However, official messaging started to change in recent months, with the policy response now described as “dynamic clearing”. Some observers anticipated a substantial shift in China’s policy response to COVID-19 outbreaks – more akin to those in advanced economies – however we argue that any changes are likely to be subtle, with China currently unable to be as open.
For further details, please see the China Economic Update (February 2022)
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