The Price of Zero: China's policy missteps during and after Covid

This anthology of essays on the Chinese economy examines the causes and economic consequences of the zero-Covid policy that China pursued during the pandemic. It argues that initial success with Covid suppression, as well as the failure of most developed countries to contain Covid-19, led to the policy becoming ideology. The dogmatic thinking, hubris, and utopianism that motivated zero-Covid also led to a series of crackdowns on industries that, until recently, were key sources of growth and innovation. The result has been a sharp deceleration of the Chinese economy, falling foreign direct investment, and debt deflation. Meanwhile, the country’s social engineers aim to transform the economy into a techno-utopia that leads the world in the industries of the future. But unless policymakers commit to deeper market reforms and foster a new social contract, China’s economic rise could be in jeopardy.