China will probably ease its disruptive Covid Zero policy by the end of this year as its economy is in trouble and the government needs money “badly,” according to veteran emerging-markets investor Mark Mobius.
“I don’t think Covid is an issue going forward,” Mobius said in response to queries from Bloomberg News. “China has no choice but to open up to ensure the economy can function. Lip service will be given to it but the reality on the ground will be different.”
The co-founder of Mobius Capital Partners is somewhat of an outlier in predicting President Xi Jinping is likely to abandon the zero-tolerance approach in 2022 right after defending the policy -- characterized by snap lockdowns, frequent mass testing,