There are insecurities from limited social welfare, hard decisions for rural migrants about where to raise a family, and the stress of competition and social pressure. In the long term, China needs a more even regional development so it can build public trust and a greater sense of security.
The Shanghai lockdown exposed China’s dependence on regional economic hubs. The creation of a new trade zone will help to more evenly distribute talent, capital and activity. Hainan’s location, size and favourable policy environment make it an ideal platform for expanding China’s overseas political and economic engagement.
China’s uncertainty over the consequences of relaxing pandemic rules is driving its dogged approach, with local governments forced to take drastic measures to meet objectives. Yet such inflexibility, amid greater awareness of the virus and at the expense of livelihoods, is fuelling discontent.
Food shortages, loss of livelihood and a sense of abandonment in the city is causing many residents to become disillusioned with the central government and its zero-Covid policy. Restoring faith in the country’s leadership is crucial for maintaining an image of stability and strength.