After tens of thousands of Chinese took to the streets in cities throughout the country, China’s government has begun to loosen pandemic restrictions. But, while an exit from the controversial zero-COVID policy was long overdue, the path ahead is strewn with pitfalls, and hopes for a sustained wave of Chinese popular resistance are likely misplaced.
In the name of taming inflation, central banks have deliberately set themselves on a path to cause a recession – or to worsen it if it comes anyway. Worse, today's monetary-policy tightening will leave long-lasting scars, whereas more carefully considered responses would work better and yield long-term benefits.
explains why the current demand-focused approach to taming inflation is all wrong.
Chinese leaders’ refusal to adopt a clear stance on zero-COVID is pure politics: nobody wants to be blamed for whatever surge in infections, hospitalizations, and deaths follows a reopening. But the longer the authorities attempt to avoid responsibility and muddle through, the greater the risk to public health.
warns that the government’s refusal to devise a comprehensive and systematic exit strategy could create the worst of two worlds.