China state media reinforce Covid Zero as cases jump in cities

CHINA’S state media reaffirmed the country’s commitment to Covid Zero, even as a spike in infections across major cities seemingly reflected a greater tolerance for outbreaks.

Nationwide, there were 17,298 new cases on Monday (Nov 14), the highest since late-April. The southern manufacturing hub of Guangzhou accounts for the majority, with 5,124 cases despite lockdowns being extended in three of the city’s districts. The southwestern megacity of Chongqing has also seen a spike in infections, which climbed to 2,948.

The growing outbreaks coincide with a sweeping overhaul of China’s Covid framework, including shorter quarantine and ending flight bans, sparking speculation that a major shift in authorities’ pandemic response was underway. But officials moved swiftly to quash that optimism, and state media publication the People’s Daily said in an editorial Tuesday that the country is sticking to Covid Zero.

China will “firmly implement the general policy of ‘dynamic clearing’”, the flagship newspaper of the Communist Party said, with authorities to reduce the scale of the pandemic and boost the efficiency of controls. It follows a commentary on Monday about the country’s Covid policy that didn’t use the phrase ‘dynamic clearing’.

The re-appearance of the core Covid phrase pushed Chinese bonds higher for the first time in three sessions as risk appetite waned. The yield on 10-year government bonds dropped as much as 3 basis points to 2.81 per cent from the highest in July.

Investors are closely focused on changes to Covid strategies, with even unverified rumours about policy tweaks triggering major moves across asset classes. While Beijing has outlined 20 measures that will underpin its pandemic approach, it’s not yet clear how they’ll be implemented on the ground as local authorities struggle to balance stamping out the virus without using excessive measures.

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China eases quarantine, flight bans in Covid Zero pivot

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China’s capital, Beijing, has quietly intensified restrictions in some districts as new cases hit 461. Some supermarkets, office buildings and shops in the Chaoyang district require negative tests done within 24 hours to enter, according to notices seen at entrances, even though no formal announcement was made. The district has also moved some testing sites to inside housing compounds, with the change leading to long lines for residents. BLOOMBERG