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The great reconnection of a China 🇨🇳- 2023 – onwards and upwards

China has spent 1,016  days in “isolation” and is looking to open its borders on January 8th!

Going from some of the world’s strictest restrictions to almost none. 

It was a tough time 

  • Millions were quarantined or hauled off to fever camps, often arbitrarily. Amateur videos captured residents leaping to their deaths from apartment blocks after weeks of seclusion. 
  • In major cities daily life stood still for months on end. A life without international travel. 
  • Foreign entrepreneurs and executives were barred from returning to their homes:
  • Overseas tourism has collapsed

The pendulum is swinging to “business as usual”

The rebound of the Chinese economy could account for two-thirds of global growth in the next few years . (The economist Jan 23 )

Increased commodity Prices 

This could fuel inflation with an Increased demand for energy and commodities will be felt around the world. 

It consumes almost one-fifth of the world’s oil, over half of refined copper, nickel and zinc, and more than three-fifths of iron ore. In November Goldman Sachs has predicted  the price of copper would increase to $11,000. 

Increase demand for  lng gas and Increase crude imports throughout the year could push up oil prices by about $15 per barrel. 

People getting back to work 

Chineses people are hankering to get to work – “the great resignation does not seem to be a problem” says Richard Yuan – Australia’s leading China Expert 

There were no stimulus cheques – the great resignation does not seem to be an issue 

– People who lost their jobs, will return to work quickly when the opportunity arises, which will help cope with the increasing demand .

Property recovery 

In November, as covid restrictions were relaxed, policymakers eased property developers’ access to financing they may make further cuts to mortgage rates and down-payment requirements.

Chinese travellers- a boon for the tourist and travel industry 

selling tourist destinations to Chinese citizens upper classes whos spend 3-4 months a year travel vs zero

Thailand, Hong Kong , Australia, Singapore , Vietnam 

should be recipients of increased tourism 

China is wanting to keep their place in the global supply chain,” with delegations of officials and businesspeople from all over China including – Fujian, Guangdong, Jiangsu, Sichuan, Zhejiang – planning overseas trips to “grab orders” and win back investors

“A meeting is worth a thousand emails”



What the great reopening means for China—and the world from TheEconomist

Posted on January 3, 2023

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