China Finally Easing Covid Restrictions

Lockdown scenes like this will be disappearing in China

There is big news from China -- it is finally beginning to ease Covid-19 restrictions and it's quickly being reflected on the bourses in Hong Kong and Shanghai. The Hang Seng Index jumped 7.7 percent to end trading at 17,319.76.

Those traveling to the mainland will only quarantine for five days compared to seven previously, and then three days of home monitoring.

More importantly the practice of cancelling international flights if there are too many infections on previous flights will be scrapped. 

There will be increased flights to/from China

This was a major barrier to not only people returning, but also those making business trips. Once the number of flights ramp up, ticket prices will finally go down.

Travelers coming to China only need to show one PCR negative test taken 48 hours before boarding, while close contacts of a positive infection will only be quarantined for five days instead of seven.

In addition, the State Council announced that Covid-19 testing will only be conducted in key areas where cases have been detected. Previously an entire region would undergo mass testing despite no recorded outbreaks in the wider area. Now they will focus testing when the source and chains of infection and transmission are unclear.

And finally the government is prioritising vaccinations, particularly among the elderly, and developing vaccines with "broad-spectrum protection" -- perhaps a euphemism for bivalent? Foreign-made?

Strange that the State Council did not announce this during the national congress, or was it for Xi to show off to the country and the world his unyielding power and then now quietly admit it's time to start moving on like everyone else?

Finally more elderly will be boosted with jabs

While this is good news for everyone, it is probably too late to salvage the economy, particularly when it is related to global trade. Foreign companies have already begun or already detached themselves from the Chinese supply chain and sourcing products and services elsewhere.

Even though state media seems to think, or wants people to believe China's economy will bounce back right away once the restrictions are relaxed are kidding themselves, and the domestic market has no appetite for consumption. Even the uber rich are looking to exit the country as they feel uneasy under Xi's rule.

Still a long ways yet from regular tourists coming to China, but at least business travelers who need to go there can do so with a bit less trepidation.