China has decided to loosen up its covid restrictions to rejuvenate its slowing economy.
👉 Background: China is kind of an economic engine room, or factory, for the rest of the world. But over the last few months, China’s strict covid rules have meant bad news for the Chinese economy.
👉 What happened: According to the most recent data, Chinese exports have dropped almost 9% compared to the same time last year
And its imports fell over 10% - that’s the biggest drop in nearly three years.
👉 What else: Now, China has decided to relax covid restrictions, with the aim to rejuvenate its slowing economy.
💡The relationship between extended lockdowns and a country's economy can be complex and varied.
💡It's pretty clear that lockdowns have a negative impact on a country's economy. It reduces economic activity, limits people's ability to work and results in lower levels of production.
💡Right now, time is of the essence for China, because the global economy is shifting into potential recession territory. So, the Chinese government is now prioritising its own economy over its fight against Covid.
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