Lockdown easing: Shanghai wants to boost the economy

The Chinese metropolis of Shanghai has announced further easing of the strict corona measures. She wants to quickly boost the economy, which has been slowed down by the lockdown.

After two months of strict corona lockdown in Shanghai, the city has announced further easing. Banks should reopen by Wednesday, and some children should go back to school from June 6th.

Many supermarkets have recently been closed

Two weeks ago, there was already a prospect that China’s largest metropolis would gradually return to normal by the beginning of June. However, supermarkets and hairdressers were largely closed, contrary to what had been announced. Many of the more than 25 million inhabitants are currently only allowed to leave their homes with special passes and for a limited time. Some others remain locked in their homes.

The local authorities are still nervous: after crowds gathered over the weekend, some streets were blocked off again with barriers. At the same time, a large shopping center was allowed to open again for the first time, which not only sells everyday necessities, but also luxury brands, among other things.

Containers are stuck in the port

The recent easing in Shanghai comes with several measures designed to help the economy recover. Industry and retail have collapsed in both Shanghai and other Chinese cities during lockdowns. The unemployment rate in China has risen to its highest level in more than two years.

The global ship jam and the Chinese zero-Covid strategy threaten to damage the German economy more in the near future than previously assumed. According to the Kiel Institute for the World Economy and the Port of Rotterdam, the number of ships heading west from China has already fallen. The London shipping consultancy Drewry estimates that in April alone 260,000 containers destined for export all over the world were not loaded at the world’s largest port in Shanghai.

Appeal to provinces and cities

Last week, Chinese Prime Minister Li Keqiang called an urgent crisis video conference and called on provinces and cities to revive the economy. With this economic policy, Li Keqiang is increasingly distancing himself from state and party leader Xi Jinping, who continues to adhere to the strict zero-Covid strategy. The Chinese state and party leadership reacts to the smallest corona outbreaks with lockdowns, mass tests and travel restrictions in order to bring the number of cases back to zero.

According to official information, after the largest corona outbreak in the People’s Republic since the beginning of the pandemic, the numbers fell from a high of almost 30,000 new infections per day in mid-April to just over 100 cases recently. Corona measures were also withdrawn in the Chinese capital Beijing. Museums, libraries, theaters and fitness studios are open to visitors again, some with a limited number of people.