Will the growing protests in China impact global markets?

Last week, the Chinese marched on the streets to protest against the government’s rigorous “zero-COVID” approach, openly defying the Communist Party for the first time in more than 30 years, sending tremors across the global financial markets, which recovered quite quickly a few days later. However, the immediate effect on global markets is causing many investors and analysts to wonder what the future holds for the second-largest economy in the world.

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Why are people protesting in China?

Everything started with a fire that took place on November 24 in the capital city of the Xinjiang province, Urumqi. As the fire in the apartment building resulted in the deaths of at least 10 people and injuries to 9 more, recordings of the event seemed to show that the lockdown procedures slowed down the response time of firemen.

Chinese people are tired of this zero-Covid policy preventing them from living their lives, so they started to demonstrate in Urumqi, which then spread across China in an unprecedented movement that represents a real challenge for the leader Xi Jinping and his zero-Covid policy.