China could reopen in March, but zero-Covid has shaken confidence in supply chains, economist says
- While Chinese authorities could gradually unwind restrictions in March, zero-Covid policies are starting to hurt global confidence in the country’s industrial supply chains, said Li Daokui, Mansfield Freeman professor of economics at China’s Tsinghua University.
- In the short term, supply chains will be largely unaffected since factories are still operating, Li, a former advisor to the People’s Bank of China, said in an extended interview with CNBC’s “Squawk Box Asia” on Wednesday.
- If China relinquishes its Covid-zero policies, it should be able to get back to a “magic” growth rate of 5% to 6%, which is the right amount of growth given the current size of China’s labor market.
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