But why are you still in a lockdown situation at all? ... Covid is still around but with the vaccinations ...
I think you've answered your own question. To my mind, there is a genuine reason for the lockdowns, due to two medical issues, but those issues are the result of politics.
First, vaccination rates are low. Rather than in the UK, where we started with the elderly and vulnerable, in China, they largely vaccinated the young and healthy. Among the over 80s, vaccination rates are around 50%, and that's with less effective vaccines, whose effects are starting to wane. The elderly who have lived through the Cultural Revolution don't appear to trust the government and their vaccines, and who can blame them?
Secondly, rather than invest in hospital capacity, the government has invested hugely in isolation centres and testing. ICU capacity would be overwhelmed. The government has wasted the past three years and has made no plans for post-covid.
If the government opens up, hundreds of thousands will die (at least). If they don't open up, the economy will crater, and the young will see the failures of an authoritarian state.
The root cause of these issues are political. The government wanted to show it was the best in the World, and Xi Jinping cannot change course without losing face. He hasn't listened to medical advisors.
Lastly, all of this is political. It harks back to earlier periods which Xi Jinping is keen to implement. Daily life is controlled here by local party officials who can close districts and buildings at will. This means we are all watched and controlled at the lowest level. We scan into buildings and transport, and the government does not want to give up that control.
The only positive I see is that the government has backed itself into such a corner, that the moral authority of the government can only wane and there's a slimmer of hope that one day, China might become a free society.