Xi Jinping is damaging China’s economy—and the president’s inflexible policies have big implications for the world. Our latest cover story:
past 20 years China has been the biggest and most reliable source of growth in the world economy. It contributed a quarter of the rise in globalover that period and expanded in 79 of 80 quarters. For most of the period since China opened up after Mao’s death, the Communist Party has taken a practical approach to making the country richer, mixing market reforms with state control. Now, however, China’s economy is in danger.
It is, however, Mr Xi who bears much responsibility for the twin blows to the economy. The first is his zero-covid policy, which has been enforced for 28 months. The party fears that opening up would lead to an exit wave that could kill millions. That may be true, but it has wasted precious time: 100m people over 60 are not triple-jabbed. It refuses to import more effective Western mvaccines. Instead the plan may be to push zero-covid into next year.
The government hopes a vast stimulus programme that is in the works will help it meet the official growth target of 5.5% for 2022 and calm nerves ahead of the congress. On May 19th Li Keqiang, the prime minister, urged officials to “act decisively” to restore growth, and the central bank cut mortgage rates. The party has tried to reassure terrified tech tycoons. A likely next step is a big bond-financed government infrastructure programme.
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