There has been a double whammy of good news/bad news from China this morning.
On one hand, and just one week after China was rocked by violent protests over the regime’s increasingly draconian and deadly covid-zero lockdown measures, Beijing announced further easing of covid measures even as the number of new infections soar. Specifically, China announced the first explicit endorsement from the central government of isolating asymptomatic or mild coronavirus cases at home rather than at hospitals or centralised quarantine facilities. The new measures, outlined on Wednesday by the State Council, China’s cabinet, were foreshadowed by a meeting of the Chinese Communist party’s politburo that emphasised the importance of stabilizing the economy rather than the battle against Covid-19. As such, the market reaction was limited and Chinese stocks were sold on the news having staged a record surge in recent weeks on the rumor.
However, while the latest relaxation of covid zero was welcome, if more than priced in, there was far worse news in the latest Chinese trade data update which not only showed another month of contraction across both exports and imports, but a dramatic plunge in exports, which came far worse than the worst Wall Street forecast; bottom line: exports and imports both shrank at their steepest pace in at least 2-1/2 years in November, as feeble global and domestic demand, COVID-led production disruptions and a property slump at home piled pressure on the world’s second-biggest economy.
and there it is! that’s how communism works and thats what the elites want for the rest of the world!
Does the economy work for man or does man work for the economy?