As China’s Economy Suffers, Xi Faces Pressure to Lift Virus Restrictions

Deepening economic damage from China’s coronavirus outbreak is forcing its leadership to confront an agonizing decision: when to ease quarantine restrictions that are strangling growth, even as they help contain the virus’s spread.

Business executives and some local leaders are becoming more vocal about the need to streamline rules to reopen factories and get workers and supplies moving again in many parts of the country where activity remains at a standstill. 

But many local officials fear doing so could risk a resurgence of infections, prolonging the outbreak and putting their jobs on the line. Many privately complain that President Xi Jinping has put them in an impossible position, demanding they keep growth on track while also ensuring the virus doesn’t spread.

Tensions have sharpened in recent days amid signs that infections may be peaking in Wuhan, the outbreak’s epicenter, where confirmed infections have reached more than 47,000 cases, or about 60% of the national total. While that has brought hope the epidemic may be coming under control in China, it has heaped pressure on officials to declare victory and loosen quarantines before the economic pain worsens.

Wuhan briefly announced on Monday it would begin to ease its quarantines that day, only to retract the notice a few hours later. Wuhan’s government said in a statement that its earlier notice was issued without the approval of the city’s “key leaders.”

Other cities, including Beijing, tightened restrictions on movement in recent weeks after having taken tentative steps to loosen their rules only to see new infections appear.
Mr. Xi has sent mixed messages, calling on leaders to stop at nothing to contain the virus while also urging them to ensure growth remains robust. The leader needs both tasks to succeed to quell public anger toward the government’s handling of the outbreak and reinforce his popular appeal.

In an address to the 25-member ruling Politburo this month, Mr. Xi instructed party members to wage a “people’s war” against the outbreak. Then, he said China must adhere to development targets, which call for doubling the size of China’s economy in the decade through 2020—a goal officials say requires annual growth of at least 5.5% this year.
Three days later, Mr. Xi told French President Emmanuel Macron in a call that the epidemic’s impact on China’s economy would be “temporary,” adding “China will still be able to achieve” its growth targets, according to the official Xinhua News Agency.

On Tuesday, Mr. Xi called on authorities to help farmers cross road barricades to return to rice paddies for “an all-out effort to secure a bumper summer grain harvest.” Analysts say if the spring farming season is missed, China’s food security would be at risk. 

Despite Mr. Xi’s displays of confidence, the economy is fast weakening. Factories remain idle, and consumption and investment have plunged. While China has delayed the release of official economic data until mid-March, other indicators point to a significant downturn.


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