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We are delighted to announce the release of a new book, The Price of Zero: China’s Policy Missteps During and After Covid, by Prof. Donald Low, Senior Lecturer and Professor of Practice at the Division of Public Policy, as well as the Co-Director of Leadership and Public Policy Executive Education at the Hong Kong University of Science & Technology.
The book delves into the causes and economic consequences of China’s zero-Covid policy. Initially effective in controlling the outbreak, this approach eventually led to significant challenges as the virus became more transmissible and as highly effective vaccines became available. The government's reliance on strict suppression measures, combined with a series of regulatory crackdowns, weakened consumer and investor confidence, and created deflationary pressures. Despite the authorities stepping up efforts to catalyze an economic recovery in last quarter of 2024, underlying structural problems – such as a low consumption share of GDP, over-reliance investment to drive growth, high levels of corporate and local government debt, and a prolonged property slump – are unlikely to go away soon. It is also unclear how the new emphasis on new quality productive forces would end deflation, given concerns over excess supply. The Price of Zero underlines the importance of adapting policies to (fast-) evolving circumstances, and highlights the perils of hubris, utopian thinking, and overconfidence in policymaking.
We invite you to explore Prof. Low's insightful work. For more information about the book, please visit The Price of Zero .