The Chinese government's response to the COVID-19 pandemic was seen as effective as they locked down entire cities and instituted mass testing. The government has used their success in controlling the virus as validation for their model of governance.
Despite China's vaccination efforts and the UK's booster program, rising cases in Germany and lack of vaccination among vulnerable populations continue to raise alarm about the ongoing COVID-19 pandemic.
Friedberg and the host discuss the Chinese Communist Party's (CCP) Zero COVID policy, which appears to be having a significant impact on China's economy. They suggest that Xi is the driving force behind the policy because the CCP's credibility is tied to their ability to stop COVID entirely.
The idea of Zero COVID in China plays up their government's prioritization of people's lives, while the rest of the world doesn't seem to care. However, as people travel back to their hometowns, they run the risk of spreading the virus to more remote areas.
The idea of completely ending economic activity with China is more complex than what some people may think. The lack of transparency from the Chinese government further complicates the situation.
China's financial system is experiencing chaos due to slowing economic growth, bank protests and mortgage protests, signalling similarities to the 2008 financial crisis. The root of the issue seems to be the real estate bubble and unusually high interest rates offered by banks.