China Abruptly Eases Zero-COVID Policy, COVID Surge Impacts Global Economic Recovery Forecast

In December 2022, China's National Health Commission (NHC) announced a significant nationwide optimization of its COVID-19 response measures, a decision that garnered attention from global public health organizations and was welcomed by the international business community as a crucial step toward economic normalization.

After nearly three years of strict "dynamic zero-COVID" policy enforcement, the Chinese government abruptly announced the "New Ten Measures" in early December, significantly easing restrictions on the coronavirus. These changes included canceling mass testing, allowing mild cases to quarantine at home, and ending contact tracing. This sharp policy pivot led to a rapid surge in confirmed cases and severe illnesses across China, straining healthcare resources. The sudden shift surprised the international community and introduced new uncertainties for both the Chinese and global economies.

The sudden policy reversal had complex global ramifications. Economically, international markets were broadly optimistic that the move would stimulate a rebound in the Chinese economy and boost global demand. However, from a public health and supply chain perspective, conservatives expressed concern that the rapid spread of the virus in a huge population could lead to the emergence of new variants, posing fresh risks to global public health. Furthermore, due to a lack of adequate international vaccine cooperation and insufficient early preparation, Western opinion broadly raised further questions about China's transparency in public health governance and willingness to cooperate internationally.