A series of economic crises have affected China since the country enacted its zero-COVID policy during the COVID-19 pandemic.
Background
COVID-19 pandemic in mainland China
In December 2019, the first case of SARS-CoV-2 was reported in Wuhan. The outbreak in January 2020 was the impetus for a broader pandemic; the World Health Organization formally declared a pandemic on 11 March. In response, Xi Jinping's administration pursued a zero-COVID policy. On 23 January, amid a rising death toll, the Chinese government imposed a travel lockdown on Wuhan, confining citizens within the city. In March, nearly all foreigners were barred from entering the country.
Crises
Property sector crisis
In August 2020, the Chinese government enacted new regulations on the amount of debt property developers can incur. The new regulations affected Evergrande Group, China's second-largest property developer, and the Chinese real estate market as a whole.
Debt crisis
Financing affiliates in local governments—who depend upon the vitality of the real estate market—responded to the property sector crisis by borrowing the land that developers can no longer afford. The excess borrowing has created a debt crisis; China has lent nearly trillion to over a hundred developing countries.
Youth unemployment
Since January 2023, the unemployment rate among young people in China has risen. In August, the Chinese government suspended its monthly unemployment report.