China to Reopen Borders

According to the National Health Commission, starting from January 8, 2023, China will remove the quarantine requirement for international arrivals.

For inbound travelers, only a negative PCR test result for the previous 48 hours will be required at customs, and no health code application will be necessary with Chinese embassies.

In accordance with the Law of the People's Republic of China on Prevention and Treatment of Infectious Disease, the country will downgrade the disease's management from Category A to Category B. The term "novel Coronavirus pneumonia" has also been renamed "novel Coronavirus infection".

China's easier entry and exit policy will benefit many countries around the world that rely on Chinese tourists. The recent loosening of testing and isolation requirements for travel within China may also increase domestic tourism revenue, which dropped 26% over the holiday week in October compared with last year.

Although there are likely to be substantial short-term headwinds as cases increase and residents stay home, disrupting activities, the policy shift will facilitate the way for a fuller recovery once the first major infection wave passes.

In 2023, China has pledged to revitalize consumption and support the private sector, and economists believe the focus will be on boosting the gross domestic product, with policymakers likely to aim for 5% growth or more.