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Markets applaud China’s shift from Covid-zero

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China is loosening some covid restrictions as authorities begin to slowly shift away from their zero-Covid stance.

The change in measures comes just over a week after protests in cities across the country against the continued lockdowns.

But it doesn’t mean that all Covid-related restrictions have ended. It also does not mean some restrictions won’t be around in, say, half a year.

Three years into the pandemic, China’s zero-tolerance measures, from shut borders to frequent lockdowns, contrast sharply with the rest of the world, which has largely decided to live with the virus.

The strict approach has battered the world’s second-largest economy, put mental strain on hundreds of millions and last month prompted the biggest show of public discontent in mainland China since President Xi Jinping took power in 2012.

Although last month’s protests largely subsided amid a heavy police presence across major cities, regional authorities have since cut back on lockdowns, quarantine rules and testing requirements to varying degrees. Top officials have also softened their tone on the dangers posed by the virus.

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