Since the 2008 Beijing Olympics, the world has realized the global scope of China’s economic presence. In 2010, China became the world’s second-largest economy. In 2019, a Chinese company, Huawei, unveiled 5G, a powerful communicative technique known for advanced speed. These developments were thought to signal the rise of great power, but with the pandemic came stagnation of Chinese advancement. The New York Times noted, “Many shops and restaurants in some cities shuttered, some maybe for good. Youth unemployment climbed.”

As a student living in Shenzhen, I experience strict restrictions, including a mandatory daily Covid test. Current policies even require a certificate to go outdoors. The New York Times reported, “Since early 2020, China has enforced some of the strictest entry rules in the world.” Although these restrictions may help, China pays dearly for maintaining this policy.

Certain Covid-related costs can be assessed. All Chinese citizens must line up for Covid tests almost daily, at a conservatively estimated time cost of about five minutes.  With 1.4 billion Chinese undergoing testing, the time wasted is enormous. Using another cost measurement, I recall the price of testing as 6 yuans. If 1.4 billion Chinese do eight rounds of tests, the cost is about 10 billion dollars—almost that of the Webb Space Telescope. Based on NASA’s photos, we can see that this money was well spent.

The Chinese policy also slows international trade. Although online meetings enable strategic discussions, fewer entrepreneurs are willing to come to China, daunted by lengthy hotel stays. A decline in international trade results.

Foreign companies were also spooked by events in Shanghai, as observed by the New York Times: “In Shanghai, where residents have been under lockdown since April 1, private food delivery services were being suspended in some neighborhoods despite cases falling to a six-week low.” After the blockades are removed, many foreigners escape the city. Importantly, Shanghai is one of the most developed cities in China; its GDP falls behind only that of Shenzhen. Many people abroad only know Beijing and Shanghai, so Shanghai influenced many people’s impressions of China.

Some say that since China is the world’s second-largest economy, the trade will be maintained. However, due to the current difficulties, foreign companies are seeking substitutes. Famous sportswear brands are relocating factories to Southeastern Asia, and the MCU stopped showing new films in mainland China. It is clear that China’s worldwide economic status is declining.

It is easy to turn all of this around. Once the restrictions are loosened, more industries will return because China is still the world’s second-largest economy. Conversely, if China maintains strict blockades, the economic condition will surely worsen.