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China Tells Provinces to Minimize Covid Curbs at New Year

China’s state planner wants to minimise the impact of Covid curbs during the Lunar New Year holiday to help a rebound in consumption.

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Medical workers in protective suits collect swabs from residents during a citywide nucleic acid testing after cases of the coronavirus in Zhengzhou, Henan province. Photo: Reuters

China’s state planner on Sunday urged local governments to minimise the impact from COVID-19 restrictions over the upcoming Lunar New Year holiday to help a rebound in consumption, as rising cases of the Omicron variant threaten economic growth.

“Local governments should avoid simplified, one-size-fits-all … COVID-19 epidemic and control measures (over the holiday) and minimise the impact on the people’s life,” the National Development and Reform Commission said in a statement.

It said low-risk places in China meet the reasonable demand for short trips from urban and rural residents, and step up the supply of everyday products over the holiday period.

China has reported local cases of the highly transmissible Omicron variant in at least five provinces and municipalities, including a first infection in capital Beijing on Saturday, just weeks ahead of the Olympic Winter Games in February.


High Alert

Local governments are on high alert to potential COVID-19 cases from outside, with many urging residents to stay put for the third straight year during what is usually the busiest travel period of the year.

China’s economy likely grew at its slowest pace in 18 months in the fourth quarter, weighed down by weaker demand due to a property downturn, curbs on debt and strict COVID-19 measures.

The NDRC on Sunday also said it supports the healthy development of the property market and legitimate demand from home buyers, while asking local governments to step up oversight of unfair competition and other monopolistic behaviours over the holiday period.

“The measures are aimed to further release the potential of consumer spending and push for a stable start to the economic growth in the first quarter,” the NDRC said.

  • Reuters with additional editing by Kevin Hamlin

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Kevin Hamlin

Kevin Hamlin is a financial journalist with more than 40 years of experience covering Asia. Before joining Asia Financial, Kevin worked for Bloomberg News, spending 12 years as Senior China Economy Reporter in Beijing. Prior to that, he was Asia Bureau Chief of Institutional Investor for ten years.


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