China has doubled down on its dynamic zero-Covid strategy to contain coronavirus outbreaks, disrupting businesses in a string of Chinese cities.

China’s will for opening up is unshakeable, central bank says, responding to doubts over dual circulation and zero-Covid strategies.

China’s yuan continued to weaken against the US dollar on Friday, further complicating the outlook for manufacturers amid a slowing economy, coronavirus disruptions and an aggressive US Federal Reserve interest rate policy.

China’s monthly imports from Russia hit a record high of US$8.89 billion in April, up 56.6 per cent from a year earlier, but exports to its northern neighbour were down last month.

A growing number of American firms are cutting revenue projections for China this year and say attracting foreign talent is becoming difficult, a new survey from a US business lobby shows.

China’s consumer price index (CPI) could rise to as much as 2.1 per cent in April from 1.5 per cent in March, with the World Bank warning of ‘the largest commodity shock we’ve experienced since the 1970s’.

Qin Gang blasts tariffs and says China is ‘mindful of more difficulties and challenges’ in trade and business with the United States.

As the US central bank announces its sharpest rate increase in 22 years to address decades-high inflation, analysts speculate on how Beijing will try to soften the economic blow.

With large-scale lockdowns of major cities taking a heavy toll on the economy, China’s Politburo touches on ways it will address headwinds and uncertainties.

The top-level plan is seen as a departure from when Beijing underscored financial risk controls last year, and it comes just ahead of a Politburo meeting that will lay out priorities to tackle mounting risks.

Foreign investors have dumped Chinese equities and bonds at a rapid pace over the past two months, alarming officials in Beijing who are closely monitoring US rate tightening.

China has introduced new measures to shore up market sentiment as overseas investors become increasingly suspicious about the country’s handling of multiple headwinds.

China’s yuan has depreciated by more than 1 per cent this week and by nearly 2 per cent this month, with policymakers concerned with stabilising prices and employment amid a slowing economy.

The People’s Bank of China on Thursday lowered its official yuan midpoint as authorities weighed risks to financial stability and economic growth, as well as a narrowing interest rate spread between China and the United States.

In a thinly-veiled rebuke of the US, President Xi Jinping said ‘hegemonism and power politics will only breach global peace’, while emphasising the resilience of the Chinese economy.

A top Chinese government adviser says the war between Russia and Ukraine is the result of a decades-long Western preoccupation with different ideologies, while warning the conflict could lead to another global financial crisis.

China has left its one-year loan prime rate (LPR) at 3.7 per cent, while the five-year LPR used for mortgages was unchanged at 4.6 per cent, showing a more cautious approach to supporting the economy.

As debate swirls in Beijing about how the government should respond to current economic challenges, we take a look back in recent history to see how China has weathered previous periods of economic uncertainty.

Relations between mainland China and the West are becoming increasingly complicated in the wake of Russia’s invasion of Ukraine.

China’s economy grew by 4.8 per cent in the first quarter of 2022 compared with a year earlier, up from the 4 per cent growth seen in the fourth quarter of last year.

President Xi Jinping has said an independent customs regime must be in place in Hainan by 2025, an important step towards transforming the island into the world’s largest free-trade port.

The decision by the People’s Bank of China on Friday comes two days after Premier Li Keqiang said there will be a ‘timely’ reduction in the reserve requirement ratio (RRR) to support the faltering economy.

Western sanctions on Russia following its invasion of Ukraine have already caused disruption to China’s normal trade with its northern neighbour, according to the Ministry of Commerce on Thursday.

Strict coronavirus control measures like lockdowns have rippled through port operations and economic activity in China and will likely ‘show up with a lag’ in exports, experts say.

China’s first quarter economic growth data is expected to reflect pressure from widespread Covid-19 restrictions, with some experts saying a jolt of stimulus is needed to offset more challenges in the second half of the year.

As food prices rise globally and war rages between two of the world’s biggest grain suppliers, Beijing is intent on doing what it must to secure adequate food for the most populous country.

The US State Department warns against travel to Jilin and Shanghai in mainland China, as well as Hong Kong, where it says there is a risk from ‘arbitrary’ law enforcement.

Premier Li Keqiang’s focus on stabilising economic foundations comes amid business disruptions caused by China’s dynamic zero-Covid strategy, US Federal Reserve rate rises and the Russian invasion of Ukraine.

Beijing has rolled out tax relief and other beneficial policies such as more favourable loan rates and rent exemptions for small and micro-sized firms, but analysts still expect a big hit to consumption this year.

Beijing’s zero-tolerance policy for the coronavirus has resulted in stringent lockdowns and mass testing in major cities such as Shanghai, where several European firms have their Asia headquarters.