China’s robust export growth since mid-2020 (Exhibit 1) has been a direct result of ZCP containing the spread of the virus. Politically, ZCP has highlighted the institutional strength of the Communist Party to rally resources to manage the unprecedented health crisis. Abandoning the policy now could be seen as an admission that it did not work. As leaders compete for key posts during this once-in-a-decade leadership overhaul, they will want to minimise any potential policy mistakes. So the best option would now seem to be to keep the ZCP and minimise the risk of another outbreak.

Source: CNN November 24, 2021 23:36 UTC