Chinese leader Xi Jinping ordered the entire country to adhere to the Dynamic Zero-COVID policy, but other top leaders seem to disagree. Chinese Premier Li Keqiang recently held three meetings in succession to analyze the current economic situation. At the meetings he revealed that China’s economy is currently facing serious problems. Experts say this shows that the struggle at the top of the Communist Party is intensifying.
Amid the worsening COVID-19 outbreak in Shanghai, Xi visited Hainan Province from April 10 to 13.
Party Media Support the Dynamic Zero-COVID Policy
The CCP’s official media has recently published intensive articles in support of the Dynamic Zero-COVID policy; CCP experts also claim that this policy is in line with China’s reality.Xinhua published a report on April 12, re-emphasizing that Xi’s pandemic control guideline is the Dynamic Zero-COVID policy.
On the same day, Mi Feng, spokesperson of the CCP’s National Health Commission and deputy director of the Propaganda Department, stated at a press conference that officials at all levels must adhere to the general principles of the policy.
At the press conference, Wu Zunyou, chief epidemiologist of the Chinese Center for Disease Control and Prevention (CDC), claimed that the general policy of the Chinese Communist Party for epidemic prevention and control is the Dynamic Zero-COVID, and this policy is in line with China’s reality and is also the best choice for China to fight the epidemic.
On the evening of April 12, Xinhua published a commentary, saying that the Dynamic Zero-COVID cannot be given up, “lying flat” has no way out, and only persistence can win.
What the CCP refers to as “lying flat” means that many countries around the world no longer require epidemic prevention and control measures other than vaccination.
Li Keqiang’s Three Meetings
Contrary to the rhetoric of the above-mentioned official media, the CCP’s State Council and Premier Li Keqiang are not in tune with Xi Jinping.On April 11, the State Council issued a notice requiring all regions of the country to strive to ensure the smooth flow of freight and logistics, as well as the safety and stability of the industrial chain and supply chain. The notice emphasized that blocking or closing expressways, ordinary roads, and waterway locks without authorization is not allowed, and it is strictly forbidden to set up epidemic prevention checkpoints on the main lines and service areas of expressways.
The notice stated that the relevant local governments, units, and personnel should be held accountable for seriously affecting the flow of goods or causing shortages or interruptions in the supply of materials.
On April 11, Li analyzed the economic situation when he inspected Jiangxi Province and said that due to “some unexpected changes and increasing downward pressure on the economy,” we must pay attention to the impact of the current poor logistics on the economic cycle and maintain the stability of the industrial chain and supply chain. He also said that some industries and enterprises, especially small and medium-sized enterprises and individual industrial and commercial households, have been seriously affected by the epidemic, and the supply of people’s daily necessities and medical needs have also been affected.
Li hosted a forum for experts and entrepreneurs on April 7. He admitted at the meeting that there are frequent outbreaks of COVID-19 in China, and “some unexpected factors exceed expectations, bringing greater uncertainty and challenges to the smooth operation of the economy.” He also said that Chinese market players, especially small and medium-sized enterprises and individual industrial and commercial households, are currently facing many difficulties and pressures.
Xi and Li Are Not in Tune, Expert Analysis
In an interview with The Epoch Times on April 14, Li Yanming, a U.S. based expert on China issues, and a commentator on current affairs, said that Li Keqiang and Xi Jinping are out of tune, which reflects the complexity of the current situation in China and the infighting of the CCP’s top leaders.Li Yanming said that the military recently expressed its loyalty to Xi Jinping. The authorities sent troops to Shanghai earlier, showing that Xi Jinping is fighting back, using the military to control the situation, and demonstrating military power to deter political enemies. This indicates that the high-level infighting of the CCP could face “misfires” anytime.
Li believes that the COVID-19 outbreak in Shanghai, as China’s economic and financial center, directly endangers Shanghai’s social stability and China’s financial stability. If the CCP authorities continue to implement the Dynamic Zero-COVID policy, the economic crisis will continue to intensify, public grievances can cause the situation to spiral out of control, and Xi’s political opponents will manipulate and even intensify the economic and social crisis to achieve their goal of taking Xi Jinping down .
The Zero-COVID Policy Drags China’s Economy Down
Although the vast majority of countries in the world have begun to shake off strict epidemic prevention and control and learn to live with the virus, in China, once a new case emerges, the entire population of the area is required to be tested and quarantined, and the entire city will be locked down and brought to a standstill.There are growing signs that China’s economy is sharply slowing as city lockdowns and surges in cases limit mobility and dampen demand for goods.
Nomura Holdings Inc., Japan’s largest brokerage firm, said recently that the risk of China’s economic contraction in the second quarter will rise if the lockdown is extended beyond April.
Economists at Nomura estimate that about 373 million people are currently under full or partial lockdown in 45 cities in China, and that the economic output of the blocked cities normally accounts for 40 percent of China’s total output.
The poor economic outlook and the CCP’s insistence on the Zero-COVID policy have weighed on everything from manufacturing to trade, inflation, and food prices, prompting some economists to downgrade China’s growth forecast for this year to well below the government’s target of around 5.5 percent.
The lockdown in Shanghai has once again raised questions about the CCP’s Zero-COVID policy at a time when the pandemic has unnerved many countries and companies over their over reliance on Chinese goods.
Shanghai and its surrounding areas are one of the largest manufacturing centers in China, and the Port of Shanghai is a major port carrying 20 percent of China’s freight.
The closure of Shanghai has caused congestion at the Port of Shanghai, the world’s largest port. Ship owners have been desperately trying to divert their ships to other Chinese ports to avoid the shortage of trucks and warehouse closures in Shanghai.
As of April 11, the number of container ships waiting near Shanghai was up 15 percent from a month earlier, according to Bloomberg shipping data.
Analysts have warned that Shanghai’s role in global trade is unparalleled, and if the pandemic blockade persists, it could cause serious fallout for the rest of the world.
