We have just had our Budget and our ‘economy is bubbling’ or so we are told, and we have labour shortages … but along with that, high inflation and ongoing supply chain issues. Our bogged-down global supply chain is suffering from container shortages, with delays in shipping and hold ups in supply. If you’re in an industry that can survive off airfreight you may not be so affected and our PM has flown to the US to ‘promote our interests’ there.
Is our economy genuinely bubbling or has it gone from government life support to fuel on the fire pretending to be fiscal stimulus?
That, has me a little worried, especially when I look at our biggest trading partner, China. While trade with the US is good, or any new markets for that matter what might we be about to lose from Chinese trade relationship?
China has isolated itself into an unsustainable and damaging position.
The country’s current COVID-19 strategy revolves around a zero-covid outcome.
We are more than 2 years on from seeing China’s initial response to the covid outbreak with its first lockdown in Wuhan, the central Chinese city from which we saw those dramatic scenes of pandemic panic and control.
The Chinese Government publically remains determined and committed to the enforcement of its zero-covid strategy, raising questions about what the end result might be for China.
An outbreak in March of this year, in Shanghai which is China’s biggest city, is its worst outbreak to date with case numbers in the hundreds of thousands.
The strict sequence of lockdowns in the city since has caused disruptions beyond anything we experienced in NZ.
The CCP claims to be “Defeating the virus.” with its zero-covid strategy with President Xi Jinping repeatedly saying that “people’s lives are of the utmost importance”, to justify border closures and strict domestic control policies.
It remains unclear though how many deaths might be attributed to covid across the Chinese mainland so far.
A similar situation to that which occurred in New Zealand now faces China, where questions arise as to whether the adverse effects of the lockdown which are growing more visible are more detrimental than COVID-19 itself.
I doubt we would want to see Auckland in the same mess as Shanghai is in now and there are signals of desperate concern sneaking out of the country. (Not that I like what I’m seeing in Auckland, with all the gang violence.)
Information is becoming hard to source although well informed officials will speak to well-known and reliable media on conditions of guaranteed anonymity.
Reliable sources have indicated that there is a lack of focus on other diseases and undercounting of those case numbers to justify the attention on covid.
As in NZ and France, COVID-19 has become a highly politicised disease in China, and voices advocating for any deviation from the zero-covid path can expect to be punished.
There is a growing discontent between the political world and rational opinions with many saying, in all honestly that the situation is now simply humiliating.
This is the same policy path NZ was headed down where damage outweighed the benefits and reliable observers say the lack of cost-effective reality is becoming very visible in China – perhaps we were lucky we had a protest.
Then you ask, is China still to face the economic reality we are in now. I don’t know enough about China’s economic response to suggest any answers to that question, though.
In the world outside of China where market forces are more prevalent we see Moderna dumping 30 million doses of vaccine – demand is ruling the market.
And tied to China’s implementation of non-pharmaceutical options to manage their COVID-19 situation it has its own vaccination campaign.
China has stepped up its vaccine rollout with its own domestically manufactured vaccines, most notably those by Sinopharm and Sinovac, but it’s vaccination programme to date appears to lack any strategy or merit when there is no focus on vulnerable groups.
This lack of protection of the groups most susceptible to severe disease makes it difficult for China to look at exit strategies if it’s relying on a pharmaceutical victory.
Why wouldn’t you expect vaccine hesitancy and misinformation when the Government in Beijing remains committed to the zero-COVID strategy, alongside this ambiguous and confused medical situation.
Has China watched New Zealand and tried to take a slightly different path to the propaganda control we saw coming from Ardern?
“It’s imperative that we keep a clear head and unswervingly adhere to the general policy of dynamic zero COVID, and resolutely fight against all words and deeds that distort, doubt, and deny our country’s anti-epidemic policies”, President Xi said during a recent meeting on May 5, while lockdown continues in Shanghai and case numbers are increasing in Beijing.
If China will not consider any change in policy, and not accept a similar tolerance to the virus as we have in NZ the possibility of China losing authority over its population becomes quite real.
Looking at China’s political landscape, though where President Xi is poised to secure the unprecedented third term of his presidency, their Government will want an image of stability, especially with covid to compliment, Xi’s political ambitions.
The timeline for China’s reopening might be described as a distant horizon at best, with the earliest possible time for China to drop its current measures, suggested to be some time in early 2023.
A lot could change before then both in China and NZ.