Xi Jinping's Administration May End Zero-COVID Policies Earlier Than Expected Amid Protests: Goldman Sachs

Xi Jinping's Administration May End Zero-COVID Policies Earlier Than Expected Amid Protests: Goldman Sachs

After massive protests against Xi Jinping's zero-COVID policies broke out around the country, Goldman Sachs said China might end its strict rules before April – earlier than widely expected.

What Happened: The chief China economist Hui Shan of the investment banking giant, in a note late Sunday, forecasted a 30% probability of Beijing reopening before the second quarter of 2023, reported Bloomberg.

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"The central government may soon need to choose between more lockdowns and more Covid outbreaks," Shan wrote in her note. 

It added that Xi Jinping's administrations have struggled to "balance quickly" controlling the spread of COVID-19 while obeying the rules recently introduced to try a more targeted approach – which has led to massive protests around the country. 

She added that while there is a chance of an earlier reopening, the investment banking company still sees a second-quarter exit from Covid Zero as having a 60% chance of happening. 

Meanwhile, in a note on Monday, the Commerzbank economists also said, "The current situation highlights the challenge that China faces in maintaining zero-Covid-19 while attempting to implement less stringent measures," reported The Straight Times.

There have been widespread protests across Shanghai and Beijing against China’s strict ‘zero COVID’ policies. The videos circulating on the internet show protesters chanting, “Xi Jinping step down, CCP step down,” referring to the Chinese president and the ruling communist party.

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