Chinese officials may signal policy shift from Covid Zero to growth

According to economists, Chinese authorities may shift the focus from the zero-COVID approach that has stymied economic growth at the December meeting. 

The Politburo, the Chinese Communist Party's top body, consists of 24 members. It convenes a meeting to lay out policy priorities for the year. Then they become the topic of discussion at the Central Economic Working Conference, which usually takes place within a week of the Politburo meeting. 

The targets for economic growth, including a target for GDP, are agreed on and released at the annual legislative meeting in March.

Investors are closely watching how the authorities will balance strict COVID-related rules and the nation’s need for economic growth. Beijing residents are currently holding demonstrations against strict safety measures. Given such mass protests, economists say that China will need extra monetary and fiscal stimulus to rescue economic growth. 

Carlos Casanova, senior economist for Asia at UBP SA in Hong Kong, spoke up about the policy of China. According to him, the authorities will be seeking growth at least in the first half of 2023.