Opinion | In tackling Covid-19, China is well aware of its role in the global economy

As the world continues to suffer due to the pandemic and the Russia-Ukraine conflict, China’s choices and stance are being watched closely. Many are concerned that China’s pandemic controls will have a lasting impact on the country’s continued reform and opening up as its choices will have a profound impact on the world.

Yes, the world is worried about China’s economy under the strict pandemic controls, especially as Shanghai, its business and finance centre, is at the centre of a new outbreak. The international metropolis has had the highest gross domestic product of all Chinese cities for a decade. Its net fiscal contribution is the second-largest in China. Shanghai is also a major hub for China’s global trade, with total foreign trade volume reaching US$4 trillion yuan.

There’s no doubt that, by sticking to a “dynamic zero-Covid” policy in an effort to break the transmission chain, Shanghai’s economy has seen a short-term decline. Many are worried that if it does not rebound quickly, and substantially, the city risks entering a period of pandemic-induced economic stagnation.

As an international hub and the world’s largest container port, Shanghai must not let the pandemic spill over to its economically vibrant neighbouring provinces of Zhejiang and Jiangsu, and their cities. This would bring larger disruption to China’s economy, and would also place the world economy at risk.

The Chinese government has persevered with the “dynamic zero-Covid” policy with full awareness of Shanghai’s role in both the Chinese and world economy. China has learned a lesson from the many Western countries that loosened their Covid-19 policies, only to suffer severe economic downturns.