The Chinese government has done much in recent years to harm trust with Western businesses. Wolf Warrior Diplomacy, Hong Kong crackdown, Taiwan air intrusion, regression on reform and opening, no limits friendship with a weak Russia, and unfair policy to Western Businesses in China are among the issues that make Westerners unhappy with China. However, the big issue has been 0-Covid and now the handling of the end game. CNN’s Meanwhile in China has quite an article on this today. Can we trust China again? Is there reason or not?
This government that has been genius on raising hundreds of millions of people out of poverty and freeing the economy, suddenly looks less genius. Nevertheless, the government is still smart enough, and they can find their way out of the worst of their self inflicted harm if they are ready. The unexpected and even chaotic end of 0-Covid is a very good sign of a change of direction. See my China Covid Business News from December 13.
Yes in China, we sense a shift from the abrupt end of 0-Covid, leading to more talk of economics. It appears that the government will favor the cat that catches mice for a while. See also Facing the Leadership Trust Crisis.
Is It Time? Can We Trust China Again?
Some Western companies are committed and now moving forward as can foresee the end of present Covid turmoil. I had Covid last week here as seemingly all of China did.
For the fence sitters, I think the next 90 days will tell a lot. I sense the government will work hard to lower the youth unemployment rate. Thus, they need to set the cats free. However, 90 days will tell a lot as to what direction they are aiming now. It will also show a lot of how the end game for Covid is working out.
I sense we have some good economic days in front of us in China after a tough but hopeful Chinese New Year here. Then perhaps finally growth; just in time for the world economy hopefully. Let’s just see how well the cats can do when set free.