The bullish reaction in several of the world’s leading stock markets on the news that China has ‘relaxed’ its economy-crimping ‘zero-Covid’ policy was misplaced from all perspectives. Broadly, first, China has not relaxed its zero-Covid at all, it has merely made some minor adjustments. Second, these minor adjustments will make the net effect of its zero-Covid policy worse, as it will lead to a rise in Covid-19 cases, given the complete absence in China of any effective vaccination for, or treatment of, the disease. Third, it is China’s continued economic slowdown and not its economic buoyancy that should be welcomed ... (full story)