Optimized COVID-19 control measures to bolster China’s economy
People visit Universal Beijing Resort in Beijing, Sept 20, 2022. [Photo/Xinhua]The latest 20 measures to optimize COVID-19 control in the notice released by the State Council’s Joint Prevention and Control Mechanism on Friday will have positive effects on China’s economy from multiple perspectives, deemed experts.The measures in favor of people’s mobility will have positive effect on the service industry, said Mo Kaiwei, researcher at the public policy think tank Pangoal. “Industries including tourism, catering, cultural and recreation will be significantly bolstered, and domestic consumption will be stimulated. More importantly, the recovery of the service industry will strengthen consumers’ confidence.Thus consumption will play a bigger role in driving the economic growth,” he said, quoting data from touring online platforms which saw the search for air tickets more than double from a month earlier in the wake the measure’s release. “It is hopeful that domestic consumption will recover shortly, driving the economic growth of the fourth quarter”. Mo added that the economy growth could exceed expectations in the fourth quarter.Analysts at Huaan Securities said in their report on Nov 11 that there is still room for the continuous improvement of epidemic prevention and control policies in the future. The offline flow of people will gradually recover, driving the rapid repair of offline consumption.Tan Haojun, a Chinese economics analyst, also held a similar view and noted the measures will directly benefit tourism, catering, accommodation, entertainment, culture, transportation and other related services that need close people-to-people contact or consumption in group.“These sectors have been greatly impacted by the pandemic but will recover quicker in the course of the policy adjustment.”Tan added that the measures will be favorable to supply chains. They will have an important impact on smoothing the logistics industry.Mo said the measures will also benefit the country’s foreign trade with a shortened quarantine period. Some trading firms are expecting to receive new orders and stock plans. The cancel of circuit breakers for inbound flights will facilitate the rebound of civil aviation sector as well.Yan Yuejin, director of the E-house China Research and Development Institution, said positive signals and warmth can be felt from the measures. He found the country’s capital market is already showing a clear sign of boost, “on the date of the release of the 20 measures, property stocks were obviously on fire”.Yang Delong, chief economist from First Seafront Fund, said the measures make COVID-19 prevention and control more scientific, and enliven the economy under the premise of protecting people’s lives and health.
