Omicron is in Tianjin and has spread from there to at least one city in Henan. This is going to be a massive test of the zero-Covid approach. That approach has worked well so far so do not expect the leadership to change it now, especially as we head into the Lunar New Year migration and the Beijing Olympics.

Expect local officials to do whatever takes, no matter how disruptive, to prevent and control outbreaks. And in spite of the messaging last week that people from safe areas could travel to safe areas over the New Year holiday, what local officials are going to want people coming into their areas of responsibility given that Omicron is already spreading inside the country and the source is still unknown?

Today’s Essential Eight:

1. Outbreaks

2. Shaking hands with Xi

3. The wrong kind of party in Hong Kong

4. Beijing sends a veteran of Xinjiang to run the Hong Kong Garrison

5. SOEs to the rescue of real estate developers?

6. Population worries, a suggestion for a 2T RMB annual birth subsidy

7. PRC supports cru…