China’s easing of its zero-Covid policy could lend a hand to a sputtering global economy. But the process is uncertain and long. China’s aged population has not been vaccinated at levels that would allow its healthcare system to cope with a fresh wave of cases as quarantine is lifted. This will govern the pace of economic revival after the country’s international trade last month contracted the most since the pandemic. Exports have kept the Chinese economy going as domestic demand was roiled both by Covid restrictions and a collapsing housing price market. Reviving manufacturing exports will need greater effort amid weakening global demand and improved capacity utilisation among smaller Asian rivals.
Yet, as the Chinese economy lumbers back, the recent weakening in commodity prices, particularly energy prices, is likely to reverse. This adds another dimension to central bank efforts worldwide to pull…
