Candy Apples for breakfast... Being stuck in the Happiest Place on Earth isn’t as fun as it sounds. On Sunday, a woman who had visited Shanghai Disneyland tested Covid-positive somewhere else. Cue: China locked over 30K Shanghai Disneyland visitors and staff inside the park. Visitors were forced to get Covid tested before being released from Mickey's house before midnight.
- One picture of the scene shows Disney fireworks erupting behind people in hazmat suits. One visitor's reaction: “I never thought that the longest queue in Disneyland would be for a nucleic acid test.”
- The 30K people tested negative, but were ordered to self-isolate for two days and take several more tests. The Disney fiasco is a stark example of China’s zero-tolerance Covid policy.
Déjà vu... China's crackdown is reminiscent of the one instituted early in the pandemic. Except now, China has an 80% vaccination rate (higher than the US), and it's logging about 50 cases a day, out of a population of 1.4B. For reference: The US recorded 30K cases on Saturday. Over the past few months, China has mandated business closures, event cancellations, and mass testing in certain areas. Meanwhile, other countries are loosening up:
- Australia, which used to fine people thousands of $$$ for violating lockdowns, just eased border restrictions for vaccinated citizens.
- South Korea and Japan relaxed distancing measures, while Thailand reduced quarantine requirements for vaxxed tourists.
- The US plans to lift travel restrictions for fully vaxxed global travelers on Monday.
Uncertainty is the bane of economies... especially when people aren’t sure when it'll end (China's goal = zero Covid cases). Economists believe China's policy could stunt its recovery. Chinese consumers have already started spending less on in-person activities. China’s economy grew only 4.9% last quarter, a dramatic slowdown from the previous quarter — and its full-year growth projections are being lowered. China’s approach could also exacerbate global supply chains, which are facing major delays from Asia.