15 May 2022

Can Xi Jinping vanquish Covid without crushing China’s economy?

Sun Yu in Zhengzhou and Tom Mitchell

 If the world’s second-largest economy shows any sign of recovery from its Covid-induced slump, Wang Neng should be among the first to know. 

But so far, he sees few indications of that. Like many small businesses in China, Wang’s cement mixing station in central Henan province has been hit hard by controversial lockdowns in dozens of cities ordered by President Xi Jinping to stamp out outbreaks of the Omicron variant.

 Two months after Beijing promised vague measures to support the economy through the crisis — and despite Xi’s assurance of an “all out” infrastructure drive — Wang’s business is still struggling. “Looking at cement demand, there are few signs of an infrastructure pick-up,” he says. His station is running at only 20 per cent capacity and he has cut his fee for mixing cement by almost one-quarter from last year.

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