Why can't China just ditch zero-COVID?

The Chinese government has eased some of its zero-COVID rules – but why can't it just drop the controversial policy altogether? Our China team explores the government's many challenges. Plus, after markets partied in the wake of the US October CPI report, will Jerome Powell again try to rein in the exuberance?

Show Notes

Despite the rumours, the Chinese government isn't about to abandon zero-COVID. Although new measures to tweak the rules raise hopes of a near-term end to the draconian policy, Mark Williams and Julian Evans-Pritchard explain the many difficulties involved in doing so – including the fact that the economy would likely suffer, rather than get a boost, from scrapping it. Plus, Group Chief Economist Neil Shearing discusses the challenges central bankers face at this stage of the monetary tightening cycle, not least in understanding inflation dynamics and how far rates will have to rise accordingly.    

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Capital Economics, a world leading provider of macroeconomic insight, presents The Weekly Briefing – the show with all you need to know about what's happening in the global economy and markets. From the Fed's next decision to China's slowdown to moves in equities, bonds and FX, each week, our team of economists take apart the big economic and market stories and highlight the issues that investors should be paying more attention to.