Canadian Manufacturing

Shanghai says lockdown to ease as virus spread slows

by Associated Press   

Exporting & Importing Manufacturing Supply Chain Infrastructure Public Sector COVID-19 Economy Government Manufacturing supply chains trade


China's strict lockdowns have played havoc with employment, supply chains and the economy in general.

Most of Shanghai has stopped the spread of the coronavirus in the community and fewer than 1 million people remain under strict lockdown, authorities said on May 16, as the city moves toward reopening and economic data showed the gloomy impact of China’s “zero-COVID” policy.

Vice Mayor Zong Ming said 15 out of Shanghai’s 16 districts had eliminated virus transmission among those not already in quarantine.

“The epidemic in our city is under effective control. Prevention measures have achieved incremental success,” Zong said at a news briefing.

Supermarkets, malls and restaurants were allowed to reopen on May 16 with limits on the numbers of people and mandated “no contact” transactions. But most of the city’s 25 million people remain under some form of restriction, movement around the city is highly limited and the subway train system remains closed for now.

Advertisement

Even as case numbers fall, city and national authorities have sent mixed messages about the state of Shanghai’s outbreak and when life can return to normal in the city, where many residents have been confined to their homes, compounds and neighborhoods for more than 50 days. A prospective date of June 1 has been given for a full reopening.

Zong said that authorities “remain sober” about the possibility of the outbreak rebounding, particularly as reports of new infections continue to come in from centralized isolation centers and older, rundown neighborhoods.

“Citywide, our prevention efforts are still not firmly enough established and it requires all of our continuing hard work and the cooperation of the broad masses of citizens and friends…to restore the normal running of the city in an orderly fashion,” Zong said.

Shanghai’s ruthless and frequently chaotic implementation of virus restrictions has sparked protests over the lack of food, medical care, freedom of movement and already highly limited privacy rights.

Despite that, China has rejected all criticism of “zero COVID,” including from the World Health Organization. The ruling Communist Party says it is committed to “resolutely fighting any attempts to distort, question or dismiss China’s anti-COVID policy.”

China’s strict lockdowns have played havoc with employment, supply chains and the economy in general, and data released on May 16 showed factory and consumer activity was even weaker than expected in April.

Retail sales plunged 11.1%, while manufacturing output sank 2.9% after factories closed and those that kept operating with employees living at their workplace were forced to reduce output due to disruption in supplies of components.

About half of the 9,000 biggest industrial enterprises in Shanghai are back at work after controls that shut down most of the city starting in late March eased, said Fu Linghui, director of statistics for the National Bureau of Statistics.

Private sector economists have China’s economic growth forecasts for this year to as low as 2%, well below the ruling party target of 5.5% and last year’s 8.1% expansion.

While other countries are opening up in a bid to learn to live with COVID-19, China’s borders remain largely closed and even transport within the country tightly restricted.

Advertisement

Stories continue below