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Is China “Reopening”? Forex Impact

Is China “Reopening”? Forex Impact

China’s covid policy hasn’t led to a nation-wide lockdown, so it’s more of a metaphor to talk about “reopening”. However, the economic impact from a shift in the current zero-covid policy could be seen as a parallel to when other countries “reopened” in 2021 (and then were subject to renewed restrictions with the omicron variant). The most important aspect of the China policy change is that it will have global consequences. So far, changes haven’t been officially confirmed, so here are some things to keep in mind ahead of any possible changes.

The latest

Overnight, there were unverified twitter reports that the Chief Scientist at China’s CDC Zeng Guang had said that economic development would be prioritized over covid prevention. This was in response to speculations about China’s future pivot from zero-Covid policies. Reports circulated earlier in the week that China had formed a commission to revise policy related to coronavirus, but that policy wouldn’t change until March. It is March that the new leaders were appointed after the last Congress of the CCP.

Yesterday, it was reported that Chinese officials had modified the way covid restrictions were communicated to lessen their impact. Reportedly,…

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