GOOD MORNING FROM LONDON
Two news items on China reported by Nikkei Asia
“China’s exports in August 2021 rose at a faster-than-expected rate of 25.6% from a year earlier, as global demand offset pressure on the country’s economy that was hit by rising domestic COVID cases and supply bottlenecks.”
Is China affected by Covid-19? A clear “Yes”. Some have the impression that because China took decisive action to bring Covid-19 under control that it is free from consequences. China did restrict the number of deaths to 5000 – too many, but much less than the US/UK. But Covid damage extends beyond mortality rates because there is an overarching world economic impact and whilst China’s export rebound is considerable, it would have been larger but for international trade issues – supply bottlenecks in particular.
However domestic demand remains strong providing evidence to support China’s Dual Circulation policy.
“China reports 36 cases for Monday, up from 18 a day earlier. None of the new infections was locally transmitted. The number of new asymptomatic cases, which China does not classify as confirmed cases, stood at 10, all of which were imported from abroad.”
China is vigilant and opportunities to visit China remain limited which continues to restrain the economy from an even stronger rebound. China is also keen to make the country safe for the Winter Olympics in 2022.
Tomorrow this Column will consider the significance of the “Common Prosperity” emphasis given in a recent speech by President Xi Jinping and what it means for the policy of building socialism with Chinese characteristics. Over the last few months, China’s Regulators have taken action to curtail the power and reach of the Billionaires commencing with the decision to stop the public issue of shares in Jack Ma’s technology companies. What does it mean for issues of power, prosperity and a balanced society going forward?