Latest outbreak spreading, may force more lockdowns; Ambassador Qin Gang; Attacking the WHO

The monthly Politburo meeting, expected to reviewed the economic performance in the first half of 2021 and signal policy guidance for the second half, should meet in the next 24 - 48 hours. I expect they are getting quite concerned about the Delta variant and its potential spread inside China, given the Nanjing and Zhangjiajie outbreaks and how they have spread, albeit in small numbers, to several cities in China already, including Beijing.

So long as China sticks to its policy of zero tolerance for COVID-19 cases, which is hard to back away from given the political and economic success of the current approach, the odds are increasing for more lockdowns and a significant drop off in domestic travel, through the important October National Day holiday, in normal times usually a big period for travel and hospitality-related consumption.

Given the calendar over the next seven or so months, with the 6th Plenum this Fall and then the Winter Olympics in early 2022, I would not be surprised to…