Breakingviews - China reopening is mixed blessing for inflation

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Breakingviews - China reopening is mixed blessing for inflation
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China’s exit from ‘zero Covid’ will bring it back to the top economic table. That will unblock global supply chains, easing price pressures for importers. But it also means increased competition for energy resources, writes guerreraf72

. The value of the country’s exports fell 8.7% in November versus the previous year, the steepest decline since February 2020. Exports to the United States were down 25%.

The country’s appetite for commodities is more concerning, though. Before the pandemic, China was the world’s top importer of liquefied natural gas. This year state energy officialsdemand to fall for the first time since 2002. One Western banker estimates China’s LNG consumption is 30% below its long-term average.

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