Shanghai set out plans on Monday for the end of a painful COVID-19 lockdown that has lasted more than six weeks, heavily bruising China’s economy, and for the return of more normal life from June 1.
In the clearest timetable yet, Deputy Mayor Zong Ming said Shanghai would reopen in stages, with movement curbs largely to remain in place until May 21 to prevent a rebound in infections, before an easing.
“From June 1 to mid- and late June, as long as risks of a rebound in infections are controlled, we will fully implement epidemic prevention and control, normalize management, and fully restore normal production and life in the city,” she said.
The full lockdown of Shanghai and COVID curbs on hundreds of millions of consumers and workers in dozens of China’s cities have inflicted economic pain across a range of sectors, adding to fears the economy could shrink in the second quarter.
The restrictions, increasingly out of step with the rest of the world, which has been lifting COVID rules even as infections spread, are also sending shockwaves through global supply chains and international trade.
Data on Monday showed China’s industrial output and retail sales fell in April at the fastest in more than two years, missing expectations.
Recent data has been bleak: catering revenue sank 22.7%, property sales by value slumped 46.6% and auto sales crashed 47.6%.
In Shanghai, China’s most populous city of 25 million people, no cars were sold last month, data showed, with dealerships shut. China Eastern Airlines (NYSE:CEA), which is based in the city, said passenger numbers collapsed 90.7% in April year on year.
Chinese economic activity has probably been improving somewhat in May, analysts say, and the government and central bank are expected to deploy more stimulus measures to speed things up.
But the strength and durability of a rebound are uncertain given China’s uncompromising “zero COVID” policy.
“The data paint a picture of a stalling economy and one in need of more aggressive stimulus and a rapid easing of COVID restrictions, neither of which are likely to be forthcoming anytime soon,” TD Securities analyst Mitul Kotecha said.
The data overshadowed Shanghai’s reopening plans, sending Chinese stocks lower.
Source: www.hellenicshippingnews.com
