Shanghai set to lift curbs on June 1
Beijing grapples with stubborn outbreak
Shanghai set out plans yesterday 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, normalise management, and fully restore normal production and life in the city,” she said.
But the announcement was met with scepticism by some Shanghai residents, who have been disappointed time and again by shifting schedules for the lifting of restrictions.
“Shanghai, Shanghai ... am I still supposed to believe you?” one member of the public said on the Weibo social media platform.
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 yesterday 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%; auto sales crashed 47.6%; property sales by value slumped 46.6%.
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 the rebound are uncertain given China’s uncompromising “zero Covid” policy of eradicating outbreaks at just about any cost.
“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,” said Mitul Kotecha of TD Securities.
In Beijing, the discovery of dozens of new Covid cases every day for the past three weeks shows how difficult it is to eliminate even small outbreaks.
The capital has not imposed a citywide shutdown but has tightened curbs to the point that its road traffic levels last week were similar to those in locked-down Shanghai, according to data tracked by Chinese internet giant Baidu.
On Sunday, Beijing extended guidance to work from home in four districts. It has banned dine-in services at restaurants and curtailed public transport among other measures, fuelling frustration. Videos circulating overnight showed some students at Peking University demanding the removal of fences put up around some dormitories.