China Relaxes Restrictions as Lunar New Year Travels Begin

Facts

• On Sunday, travelers flocked to and flew out of mainland China by air, land, and sea as the PRC ended the mandatory isolation requirement of inbound travelers for the first time since the start of the COVID pandemic.
• According to the state media, the 387 passengers on board flights from Singapore and Toronto were the first to arrive with relaxed guidelines at airports in the southern cities of Guangzhou and Shenzhen. The passengers were not subjected to a COVID test or five days of isolation, as was previously required.
• The order numbers for international flights reportedly recorded a year-on-year growth of 628%. The numbers of inbound and outbound flights account for 48% and 52%, respectively — with Hong Kong being the top destination for inbound tickets.
• According to China's ministry of transport, more than two billion passengers are expected to take overseas trips over "chunyun" — the 40-day period of Lunar New Year travel that began on Saturday.
• Meanwhile, China's yuan jumped to a near five-month high against the dollar as hopes for economic recovery underpinned the market. On Monday, the onshore and offshore currencies strengthened past the key 6.8 per dollar level in morning trade.
• Oil prices also climbed on Monday as the borders reopened in China — the world's top crude importer. By mid-day on the US east coast, Brent crude futures rose 2% to $80.10 a barrel, while US West Texas Intermediate crude was up $1.69 at $75.46.

Sources: Guardian , Al Jazeera, Global Times, National News, Nasdaq, and US News.

Narratives

• Anti-China narrative, as provided by FT. The world needs to tread with care as China's botched exit from the zero-COVID policy and Xi Jinping's decision to reopen Chinese borders risk becoming a global problem. Low immunity levels, low vaccination rates among the elderly, and lack of transparency still threaten to spread the virus and cause irreversible damage to the global economy. The absence of a coherent fallback strategy threatens a fresh set of pandemic nightmares for the world.
• Pro-China narrative, as provided by Global Times. It's a huge relief to be able to go back to normal. After three years of a difficult COVID fight, it's time to move forward. The smooth flow of people and logistics will develop and safeguard both health and the economy. Although there may still be difficulties, Covid cannot stop the Chinese people's firm determination to shrug off the gloomy forecasts, overcome the odds, and bounce back. The PRC has been exceptionally thoughtful in navigating this challenging time.
• Narrative C, as provided by CNN. This news is a mixed bag. Beijing's surprise decision to loosen "zero-COVID" marks the beginning of a new era. But the transition requires careful handling as infections are soaring on the mainland, and China's health system is already under pressure. Nonetheless, for many economies battered by the pandemic worldwide, the return of Chinese tourists raises hopes of a rebound for their tourism and hospitality industry.