LyrArc Article Gist
Chinese president Xi Jinping is learning from the country's Covid experience in the way Biden and Democrats learned from their initial push for tighter restrictions in 2020-2021. Most covid restrictions, quarantines, testing is being lifted in China and efforts are being made to stabilize the economy hurt by frequent lockdowns, and a new path is being taken that responds to the Covid lockdown fatigue of the people.  This will lower Chinese growth below the central bank forecast of 3.3% for 2023, yet it also offers a learning curve for the Chinese leadership and new government that was put in place after the CCP party congress in 2022. This may be experimental in the short run but offer benefits for China and the world in the long term. For the first time it means China's trade tensions with the US are turning the corner in a way no number of tariffs and rhetoric could do between the two countries. The evidence- China's exports to the US have declined by 25% already in the last few months. Exports to the EU have declined as well by 11%. China's trade surplus in November 2022 showed a drop to $70 billion from $85 billion in October. ...