Xi Jinping’s strict zero-Covid policy has resulted in an economic slump not only in China but also in the Asian region as the Chinese President’s authoritarianism has brought down the growth prospects toward zero. The ongoing 20th National Congress of the Communist Party and the stricter zero-Covid policy in the country have only confirmed that the reign of Xi for the third term will not prioritize the growth that helped power the global economic system, according to Nikkei Asia.
Xi’s authoritative regime in Beijing does not only stick to covid policies but also pivots around a self-sufficient economy. With China already growing at its slowest in 30 years, Xi’s doubling down on COVID lockdowns seems an international “sell” sign for 2023. Moreover, Xi Jinping’s extreme focus on security, and stability and quest for the reunification of Taiwan suggests the pivot to inward-looking, state-led policies are accelerating, and China’s growth is moving backwards.
Indonesian President Joko “Jokowi” Widodo is also witnessed taming economic nationalism in Southeast Asia’s biggest economy. On the other side, global investors are left wishing new South Korean President Yoon Suk-Yeol would wage an economic war on government complacency, not the nation’s female population, Nikkei Asia reported. The only news of benefit for Asian governments looking for foreign direct investment is that other regions look even worse.
In recent weeks, China has more than doubled its daily average of new infections, to nearly 2,000, which is still extremely low by global standards. The authorities are still strict about the epidemic. To ensure that the 20th National Congress does not get disturbed by any means, the CCP’s “clearing” policy has caused considerable economic and societal costs. The lives of millions of people have been disrupted, and people have complained.
Efforts to curb the spread of Covid across China led to a renewed fall in service sector activity, which disrupted business operations and restricted travel. In particular, employment continued to shrink. The gauge for employment stayed in contraction territory for the ninth consecutive month and hit its lowest point since May, reported CNN.