China’s easing of some coronavirus rules ‘encouraging’, but economic impact seen as limited

China on Friday eased quarantine times for inbound travellers, along with several other of its hardline coronavirus containment rules

But the changes are not a reversal of Beijing’s zero-Covid policy, and foreign business groups and economists say the impact will be limited

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China has announced changes to its strict Covid-19 measures, including for inbound travellers. Photo: AFP

Published: 8:00pm, 11 Nov 2022Updated: 8:46pm, 11 Nov 2022

China’s decision to ease coronavirus containment measures has been welcomed by economists and foreign business groups, but they say the road to economic recovery is still bumpy with more relaxations needed.

The State Council’s Covid-19 prevention team on Friday announced a reduction in quarantine times for overseas arrivals, scrapped quarantine requirements for “close contacts of close contacts”, ended the practice of cancelling international flights if too many passengers from previous flights test positive on arrival, and simplified risk classifications from three levels to two.

Local authorities must also ensure the smooth flow of logistics and refrain from ordering firms that are crucial to overall supply chain stability to cease production during an outbreak.

The policies boost the confidence of investors as well the general public

Zhang Zhiwei

“The new policies are encouraging. They help to clear policy uncertainty for next year, and likely help to raise market expectation for economic growth next year,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management.

“The policies boost the confidence of investors as well the general public, which has been quite weak this year.

“These policies indicate the government intends to move toward reopening the economy, though the exact schedule is still not clear at this stage.”

The stock markets of both mainland China and Hong Kong rallied after the announcement, with yuan also strengthening against the US dollar.

The number of inbound flight bookings to China on online travel giant Ctrip doubled compared to the same period on Thursday, and the number of international flight searches increased by 200 per cent.