China’s decision to soften COVID-19 restrictions in the face of widespread protests cheered markets while also raising worries about a surge in infections.
More than 20 cities, including Beijing, Shanghai and Shenzhen, eliminated rules requiring a negative test to use public transportation, according to CNN. In addition, some residents are now allowed to quarantine at home, rather than have to go to a quarantine center. Expect more restrictions to be eased, as soon as Wednesday, reports Reuters.
This may not mean that the country’s zero-COVID policy is over, however. “Rather, we see them as clear evidence of the Chinese government preparing for an exit, and trying to minimize the economic and social cost of Covid control in the meantime,” Goldman Sachs economists wrote in a research note on Sunday, according to The Wall Street Journal.
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