China’s Xi speech flagged no change to COVID-ZERO policy, no relief for property slump | Forexlive

Chinese President Xi Jinping gave his speech opening the 20th Communist Party congress in Beijing on Sunday.

Bloomberg’s summary provides no relief for those looking for a change to the one-party state’s approach to the management of coronavirus:

• Xi praised Covid Zero, his no-tolerance approach to containing infections

Nor on the imploding property sector:

• His slogans on China’s property market, meanwhile, repeated prior language even as the sector experiences its longest-ever slump due to policies aimed at curbing debt and financial risks.

It looks like those two factors will continue to be a drag on China’s economy and, in turn, globally.

Bloomberg cite Goldman Sachs further:

• Goldman Sachs Group Inc. economists wrote in a note the party congress “may not be an inflection point for major policy changes.” They see a reopening from Covid Zero will probably be delayed until at least the second quarter of 2023 — and “implemented gradually” at that.

Here is the link to the Bloomberg piece, gated.