China fights economic slump, sticks to costly ‘zero COVID’

By JOE McDONALD
AP Business Writer

BEIJING (AP) — China’s leaders are struggling to reverse a deepening economic slump without giving up a “zero-COVID” strategy that shut down Shanghai and other cities. That adds to challenges for President Xi Jinping in a year when he is expected to try to extend his time in power. The ruling Communist Party has declared containing outbreaks takes priority over the economy. That is despite warnings its goal of no cases may be impossible. Anti-virus rules keep most of Shanghai’s 25 million people at home and have closed parts of Beijing and other cities. The country’s No. 2 leader has warned the employment situation is “complex and grim.” The government is promising tax refunds and other aid to struggling entrepreneurs.