China?s national health authority has announced the biggest relaxation in COVID measures.

China’s national health authority, the National Health Commission, announced that asymptomatic COVID-19 cases and people with mild symptoms can quarantine at home rather than state facilities. This is the biggest relaxation in COVID measures for China and an indication that the country is moving away from its rigid zero-COVID policy. 

"Asymptomatic persons and mild cases can be isolated at home while strengthening health monitoring, and they can transfer to designated hospitals for treatment in a timely manner if their condition worsens," said the NHC in a statement. They added that the change in the quarantine protocols reflects adjustments in prevention and control measures according to the characteristics of virus mutations.

The NHC listed a total of 10 new guidelines following measures released on 11 November aimed at optimising COVID prevention and control protocols. Testing for people travelling domestically has also been relaxed as well as dropping testing for venues. Previously, whole communities were locked down for weeks at a time even with a relatively low number of cases. New measures by the NHC include:

• Decreasing testing: lateral flow tests can replace PCR tests in most scenarios where a result is needed, although PCRs are still needed for schools, hospitals and nursing homes.

• Lockdowns to continue but should only apply to more targeted areas - for example, certain buildings, units or floors as opposed to whole neighbourhoods or cities being shut down.

• Areas identified as "high-risk" should come out of lockdown in five days if no new cases are found. 

• Schools can remain open with student attendance if there's no wider campus outbreak.

The changes in the rules come after protests in various cities and regions in recent weeks as people criticised lockdowns and pandemic restrictions. Authorities also stressed the need to accelerate the vaccination of the elderley, stating:

"All localities should adhere to.... focus on improving the vaccination rate of people aged 60-79, accelerating the vaccination rate of people aged 80 and above, and making special arrangements.”

Economic Situation

China’s zero-COVID policy has been criticised for its impact on the economy and the slow economic recovery. The latest is:
 

• China's exports and imports shrank at their steepest pace in at least 2-1/2 years in November.

• Exports contracted 8.7% in November from a year earlier, a sharper fall from a 0.3% loss in October and marked the worst performance since February 2020.

• The downturn was much worse than the market's forecast (a 3.5% decline) with feeble global and domestic demand, COVID-led production disruptions and a property slump all contributing factors.

• Inbound shipments were down sharply by 10.6% from a 0.7% drop in October, weaker than a forecast 6.0% decline and the worst since May 2020.

• Imports of soybeans and iron ore fell in November from a year earlier while those of crude oil and copper rose, resulting in a narrow trade surplus of $69.84 billion, compared with a $85.15 billion surplus in October.

• China's economy grew just 3% in the first three quarters of this year, well below the annual target of around 5.5%.

• Full-year growth is widely expected by analysts to be just over 3%.

The yuan has already been down sharply this year, but the shift away from the zero-COVID policy and a step up in support for the property sector may help China’s recovery going into 2023.

(Sources: Reuters, BBC News)