An in-depth look at China’s economic crisis, and why inexperience is fuelling the fire

This is the first in a three-part series delving into the unprecedented challenges China is facing on its road to economic recovery, from inexperience in dealing with such crises to the compounding implications of internal demographic shifts and external trade hurdles.

The topsy-turvy roller-coaster ride that has seen China’s economy teetering on the rails for the past four years has left Zack Yao clinging to whatever business he can muster while struggling to determine when the wild ride will end.

At 37 years old, the seller of electric power tools in the eastern province of Zhejiang has never experienced anything like the series of ups and downs that accompanied China’s pandemic years and subsequent attempts to return to economic normality.

“I can still feel the sting every time I recall what I went through,” he said. “The memories are fresh.”

He hearkened back to when “everything ground to a halt in early 2020”, leaving him with no revenue for months, followed by a gradual resumption in economic activities and fluctuating earnings as snap lockdowns were imposed under China’s adherence to a zero-Covid policy. These included lockdowns from March to June 2022 in Shanghai, which borders Zhejiang to the south.

After restrictive pandemic policies were lifted later that year, glimmering hope appeared at the end of the tumultuous tunnel.