[The Economist] How China’s reopening will disrupt the world economy

Summary

1. The end of "zero-covid" policy causes the increase the number of cases; "tens of millions of people are catching it every day"

2. Even though China's economy "could contract in the first quarter," it is expected to "rebound sharply" (due to its high demand for "goods, services, and commodities")

3. As the end of the "zero-covid" policy also allows "shoppers and travellers" to "spend more freely," there will be sharp rebound not only in the China's economy, but also in the Global economy

4. However, "China's recovery will have painful side-effects" - higher inflation or interest rates

5. Europe would be harder to purchase gas - liquefied natural gas. (as the end of suppressing China's demand for gas -> will increase the competition)

5. "For China itself, the post-pandemic normal will not be a reutrn to the status quo ante"; "draconian fashion" of "zero-covid policy" led investors to regard "Chia as a risker bet"

 

Vocab (definition from Dictionary.com / Oxford Languages)

benign	having no harmful influence or effect
	So when the country opens its borders on January 8th, abandoning the last remnants of its “zero-covid” policy, the renewal of commercial, intellectual and cultural contact will have huge consequences, mostly benign
spurn	- to reject with disdain; scorn. - to treat with contempt; despise.
	For fear of looking weak, the Chinese government spurns even offers of free, effective vaccines from Europe
bank on	(intr, preposition) to expect or rely with confidence onyou can bank on him always arriving on time
	The party is banking on it
flock	a number of animals of one kind, especially sheep, goats, or birds, that keep or feed together or are herded together.
	Now would-be travellers are flocking to travel websites
pencil in	to schedule or list tentatively, as or as if by writing down in pencil rather than in ink:
	Economists are pencilling in a gdp boost for Hong Kong of as much as 8% over time.
complacent	pleased, especially with oneself or one's merits, advantages, situation, etc., often without awareness of some potential danger or defect; self-satisfied
	For Europe, China’s reopening is another reason not to be complacent about gas supplies later in the year
status quo ante	the previously existing state of affairs.
	For China itself, the post-pandemic normal will not be a return to the status quo ante
draconian	rigorous; unusually severe or cruel:Draconian forms of punishment.
	After watching the government enforce zero-covid in a draconian fashion and then scrap it without due preparation, many investment houses now see China as a riskier bet.
stultifying	to become ineffectual or impaired, especially through frustrating, stifling, or deadening conditions:
	Without novelty the mind can stultify.
xenophobic	relating to or exhibiting fear or hatred of foreigners, people from different cultures, or strangers.

Reference

The Economist, How China’s reopening will disrupt the world economy