Lao Man (老蛮), an individual commentator in China, known for his writing on China’s economy, posted an article to list six prices that China paid for adopting the “zero-COVID” policy for the past three years:
- The fiscal deficit increased by 60 percent in those three years.
- The collapse of municipal investment companies (these companies are set up by local governments as a vehicle to raise money to finance government spending, usually using land which the government owns as collateral).
- The collapse of the government’s credibility.
- The collapse of the birth rate.
- The withdrawal (departing from China) of foreign companies.
- The general public’s decision not to take out loans to finance their purchases after they lost hope in the future.
Source: China News Digest, May 8, 2023