When China’s “zero-COVID” policy was virtually abandoned in December 2022, there were hopes of economic boom times for the world’s second-largest economy. With weakening factory output and sluggish consumer spending, it’s become increasingly obvious the rosy forecast won’t pan out as expected. Straight Arrow News contributor Peter Zeihan explains why China is not experiencing the post-COVID bump some initially predicted.

Excerpted from Peter’s June 12 “Zeihan on Geopolitics” newsletter:

As countries across the globe peeled back COVID restrictions, many of those economies saw huge (and much-needed) bumps. With China approaching six months since lifting its lockdown, the question on everyone’s mind is why hasn’t the world’s second-largest economy seen an economic bump?

I won’t hold my breath, and the Chinese shouldn’t, either. There is simply too much going on in the Chinese system for reopening to fix everything magically. Between countries pulling their manufacturing needs from China in favor of reshoring, a growing anti-China sentiment, and a terminal demographic situation…China isn’t looking so hot.

It shouldn’t come as a surprise to anyone that China isn’t going to be getting a post-COVID bump. In all likelihood, they are probably going to experience an economic slump.