Market Intelligence—13.12.22
Macroeconomics
In our last issue, after widespread demonstrations in China, we discussed the possibility of changes to the covid-19 policy in China. We pointed out that this would only happen for the sake of saving face and that this would hardly be possible very quickly. How wrong we were. Within the last 14 days, the Chinese government has made an almost complete 180-degree turn in its policy and lifted many restrictions. Obviously, Beijing also sensed that people’s patience was running out and that the first demonstrations and riots could be the start of something bigger. The bizarre way in which governments sometimes want to preserve their reputation could be seen in suggestions of a name-change for the virus. Even the discussion that the virus is suddenly no longer so aggressive and dangerous seems very creative.
