China is reaping the economic benefits of its COVID-19 policies


China reported Monday that its gross domestic product expanded by 4.9 percent in the third quarter compared with a year earlier, putting the country on track for economic growth of between 1.9 percent and 2.5 percent in 2020. The U.S., meanwhile, will see its economy shrink by 4.3 percent this year, while European nations will contract by 8.3 percent, according to International Monetary Fund projections.
China, like most of the world, saw its economy contract sharply in the second quarter, due to the COVID-19 pandemic that started in Wuhan. "But since then, China has staged a dramatic economic recovery due to extensive, mandatory testing and quarantine policies," NPR reports. "Daily new cases of the coronavirus have dropped to single digits. Subsequent outbreaks were contained by strict, city-by-city lockdowns that have allowed the national economy to continue operating even as some regions were temporarily sealed off."
Beijing paved the way for a return to economic growth "in roughly three stages," The Wall Street Journal reports: Shutting down its economy from January through March, firing up its factories starting in April, and — "having almost entirely stamped out the coronavirus within its borders — encouraging consumers to begin venturing outside of their homes and opening up their wallets." This resumption of manufacturing has increased China's share of global exports and economic influence, and has widened its trade surplus with the U.S.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Because consumption is still soft in China and other countries, the country is now making more goods than people are able or willing to buy. Economists will be watching China's inventories for signs that its economic expansion is sustainable.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
A tall ship adventure in the Mediterranean
The Week Recommends Sailing aboard this schooner and exploring Portugal, Spain and Monaco is a 'magical' experience
-
How drone warfare works
The Explainer From Ukraine to Iran, it has become clear that unmanned aircraft are rapidly revolutionising modern warfare
-
The tourist flood in the Mediterranean: can it be stemmed?
Talking Point Finger-pointing at Airbnb or hotel owners obscures the root cause of overtourism in holiday hotspots: unmanageable demand
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores