China’s Xi: Covid control is entering new phase as cases surge after reopening

Chinese President Xi Jinping appeared in a televised speech to mark the New Year on Saturday, per Reuters. The policymaker called on for more effort and unity as the country enters a "new phase" in its approach to combating the pandemic.

This was Xi’s first comments to the public on COVID-19 since his government changed course three weeks ago and relaxed its rigorous policy of lockdowns and mass testing, reported Reuters.

Key comments

China's 2022 economic output was expected to exceed 120 trillion yuan ($17.4 trillion).

China had overcome unprecedented difficulties and challenges in the battle against COVID, and that its policies were ‘optimized’ when the situation and time so required.

Since the outbreak of the epidemic ... the majority of cadres and masses, especially medical personnel, grassroots workers braved hardships and courageously persevered.

At present, the epidemic prevention and control is entering a new phase, it is still a time of struggle, everyone is persevering and working hard, and the dawn is ahead. Let's work harder, persistence means victory, and unity means victory.

Forex implications

The news should weigh on the prices of commodities and Antipodeans, which in turn can exert downside pressure on the AUD/USD and NZD/USD due to Australia and New Zealand’s strong trade links with China.

It’s worth noting that Australia became the latest to join the other developed countries in requiring Chinese travelers to have negative Covid test results. Travelers from China to Australia will need to submit a negative COVID-19 test from Jan. 5, Australian health minister Mark Butler said on Sunday, report Reuters.

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