| Summary: | This Selected Issues paper focuses on recalibrating the coronavirus disease (COVID) strategy in the People’s Republic of China. Successfully containing outbreaks also supported the gradual transition to more targeted and flexible containment measures, refining the overall strategy in line with the evolution of the pandemic. In late 2022, the authorities started easing COVID containment policies notwithstanding ongoing spikes in infections. Even though the economy bounced back quickly from the 2020 outbreaks, the recovery of private consumption has been lagging—in part as a result of the need for recurring lockdowns and elevated uncertainty. Throughout 2022, the emergence of more transmissible variants put the zero-COVID strategy to test and outbreaks have significantly hurt domestic economic activity. An immediate withdrawal of all nonpharmaceutical interventions could have severe health consequences, given the relatively lower level of vaccination for the most vulnerable, a possible lack of antiviral treatments, and still limited medical capacities
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