Opinion | 5 reasons China’s reopening is good news for the global economy

After almost three years of zero-Covid, China’s reopening has occurred “gradually, then suddenly”, to borrow Ernest Hemingway’s famous phrase.

Just a month ago, life here in Beijing had all but ground to a halt as local lockdowns spread across the city. Now, it’s like a cloud has lifted as ring roads, offices and malls around the capital begin to fill up again.

Cases are surging across the country, but most are mild and will soon subside as herd immunity is reached. Infections in Beijing may have peaked already, with other cities likely to follow this month.

The lifting of most restrictions will inject vitality into the economy as people return to regular work and life patterns. The accelerated reopening has prompted Goldman Sachs and Morgan Stanley to raise China GDP growth forecasts to above 5 per cent for 2023.

The positive outlook is reinforced by Beijing’s shift to a more pragmatic pro-growth economic policy, as signalled at the recent central economic work conference. This includes support for the private sector and domestic consumption and a more accommodating stance towards real estate and big tech, key growth drivers that have both suffered regulatory crackdowns over the past two years.

China’s reopening also eases fears of a global recession at a time when advanced economies are slowing as a result of rising interest rates and high energy costs. The country is by far the world’s biggest growth engine, accounting for around 30 per cent of global growth.