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China’s Xi Jinping calls for sticking to zero-Covid policy

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Xi Jinping was seen giving a speech on the occasion of the centenary celebrations of the founding and establishment of the Chinese Communist Party. This event took place in Fuyang on the 1st of July 2021. 2022 will be a crucial year from a political standpoint for China. Xi Jinping is likely to win an unprecedented third term at the 20th National Party Congress this fall, along with a shuffle of officials.

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BEIJING — Chinese President Xi JinpingA meeting of high-ranking leaders was held on Thursday. It stressed the importance that the country adhere to its “dynamic zero Covid” policy. State media reported that it warned about economic consequences.

State media reported that the officials urged the nation to “resolutely combat” any questioning of the virus control policies and called for unity behind the Chinese Communist Party central Committee’s decisions.

The leaders at Thursday’s meeting were the central committee’s Politburo standing committee — a close group of officials around Xi. On Friday, the Politburo, a broader group of officials around Xi, held a regular meeting. It upheld the Zero-Covid policy and called for financial growth targets to be supported.

Ting Lu, chief China economist for the Japanese bank Nomura, stated that March was the last time Xi hosted a meeting on the standing committee regarding the virus.

He stated that references to economic growth and balancing such policies were not included in the last meeting’s readingout.

On Thursday, the meeting was focused on how relaxed virus prevention and control methods could cause large-scale infection, severe illness, and death. The economy, and people’s safety, would also be severely affected.

CNBC translated the Chinese-language official meeting reading out, which stated that “We won the fight to defend Wuhan and can definitely win the war to defend Shanghai.”

Bruce Pang of China Renaissance’s macro and strategy research, which is a manager of investment banks and fund managers, stated that these comments need to be considered in the context last Friday’s Politburo meeting and should not be seen as a push to unify China around the zero-Covid policies. “Investors shouldn’t overinterpret and ignore them both.”

This news comes at a time when the country faces its worst Covid infestation since the beginning of 2020. Beijing, China’s capital and the metropolis in Southeast Shanghai are all affected. suspended much local businessTravel restrictions were imposed, prompting investment banks to cut expectations for growth.

China’s Center for Disease Control and Prevention published a study in November that said shifting to the “coexistence” strategy of other countries would likely result in hundreds of thousands of daily cases and devastate the national medical system.

Pierre Hoebrechts from Arowana Asset Management, Hong Kong’s chief investment officer, said that the key point for us is how open they are to implementing the zero-Covid policy more pragmatically. His suggestions for solutions included testing home and using home quarantine more often than in centralized facilities.

He said, “People are critical of the policy. I believe that is the wrong approach.” Everybody benefits if there is a better way to implement the zero-Covid Policy.

Very few cases

Beijing reduced by four days the time limit for international visitors arriving in the city earlier this week.

In the past few days, there has been a significant drop in new Covid cases daily in mainland China.

The Wednesday report by the National Health Commission showed 356 cases of symptoms. They were mostly from Shanghai. Beijing had 55. In the United States, as at April 27, the seven-day moving average of new cases was 53,133 — up 25.2% from the prior week, according to the Centers for Disease Control and Prevention.

CNBC Pro provides more details about China

It is not clear when factories and supply chains will return to normal.

A separate meeting was held on Thursday by Premier Li Keqiang. It announced additional support for jobs and small business, including cuts in utilities costs and $242.42 billion (1.6 trillion yuan) in loans.

The week before, Xi called for an “all-out” effort to construct infrastructureThis is a strategy that China used to increase its growth in the past and was expected by analysts.

This year will be crucial for China from a political standpoint. Xi, along with a shuffle of officials, is likely to win a third unprecedented term at the 20th National Party Congress.

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