China to announce virus norms’ easing

Hong Kong/Beijing, Dec. 5: China is set to announce a further easing of some of the world’s toughest Covid curbs as early as Wednesday, sources said, as investors cheered the prospect of a policy shift that follows widespread protests and mounting economic damage.

Three years into the pandemic, China’s zero-tolerance measures, from shut borders to frequent lockdowns, contrast sharply with the rest of the world, which has largely decided to live with the virus.

The strict approach has battered the world’s second-largest economy, put mental strain on millions and last month prompted the biggest show of public discontent in China since President Xi Jinping took power in 2012.

Although last month’s protests largely subsided amid a heavy police presence across major cities, regional authorities have since cut back on lockdowns, quarantine rules and testing requirements to varying degrees. Top officials have also softened their tone on the dangers posed by the virus.

Shanghai announced on Monday night that it would remove Covid testing requirements for people to enter most public places from Tuesday. And a new set of nationwide rules is due to be announced soon, two sources with knowledge of the matter said, paving the way for more coordinated easing.

Beijing is also weighing whether to scale down its management of the virus to reflect the less serious threat it poses as early as January.

More broadly, analysts now predict China may drop border controls and re-open the economy sooner than expected, with some seeing it fully open in spring. “Though we are hopeful, we caution that the road to reopening may be gradual, painful and bumpy,” wrote Nomura chief China economist Ting Lu.