China’s mall of 25 million people aims to end, from Wednesday, a two-month lockdown that has severely damaged the economy and seen many residents lose income, struggle to feed themselves and face isolation.
The painful coronavirus lockdowns in major Chinese cities run counter to trends seen in the rest of the world, which has largely attempted to return to normal life even as infections spread.
Shanghai, China’s most populous city, will end many conditions for businesses to resume work from June 1. The city has also launched measures to support its economy, including reducing some taxes on car purchases, accelerating the issuance of local government bonds and speeding up approvals for real estate projects.
Shanghai will ask banks to roll over loans to small and medium enterprises for a total of 100 billion yuan ($15 billion) this year.
“We will fully support and organize the resumption of work and production of enterprises in various industries and fields,” Vice Mayor Wu Qing told reporters, adding that the “unreasonable” COVID restrictions on businesses would be lifted.
Wu did not give details of the restrictions that would be lifted.
In April, Shanghai began publishing “whitelists” of major auto, life science, chemical and semiconductor manufacturers allowed to resume operations.
But many priority businesses had suppliers who were unable to reopen, so they still faced logistical bottlenecks.
Many business executives have also complained about onerous COVID constraints as they have to find sleeping quarters for staff to isolate and implement rigorous disinfection. Most businesses in the city are still closed.
All “whitelists” will be removed, Wu said.
Earlier on Sunday, city government spokeswoman Yin Xin said Shanghai would relax testing requirements for people who want to enter public places from Wednesday to encourage the return to work.
“The current epidemic situation in the city continues to stabilize and improve,” Yin said, adding that Shanghai’s strategy “pivots towards normalized prevention and control.”
People entering public places or taking public transport will have to show a negative PCR test taken within 72 hours, up from 48 hours previously.
Bus services in the Pudong New Area, home to Shanghai’s biggest airport and main financial district, are expected to fully resume by Monday, officials said.
Plaza 66, a mall in central Shanghai that houses Louis Vuitton and other luxury brands, reopened on Sunday.
The authorities have slowly eased restrictions, emphasizing the resumption of industrial activity.
More people have been allowed out of their homes and more businesses can reopen, although many residents remain largely confined to housing estates and most shops are only open for delivery service.
Private cars are not allowed out without permission, and most public transport in the city is closed. Authorities have yet to announce detailed plans for how the lockdown will be lifted.
GYMS AND LIBRARIES
In the capital Beijing, libraries, museums, theaters and sports halls were allowed to reopen on Sunday, but with limits on the number of people, in districts that have not seen community cases of COVID for seven consecutive days.
Fangshan and Shunyi districts will end work-from-home rules, while public transport will largely resume in both districts as well as in Chaoyang, the city’s largest. However, dining in restaurants is banned throughout the city.
Shanghai reported just over 100 new COVID cases on Sunday, while Beijing recorded 21, matching a downward trend across the country.
China’s economy has shown signs of recovery this month after a slump in April, but activity is weaker than last year and many analysts expect a contraction in the second quarter.
The strength and sustainability of any recovery will largely depend on COVID, with the highly transmissible Omicron variant proving difficult to eradicate and prone to comebacks.
Investors are worried about the lack of a roadmap to exit from the “zero COVID” strategy, which is to end all epidemics at any cost, a policy characteristic of President Xi Jinping. He is expected to secure an unprecedented third term at a congress of the ruling Communist Party in the fall.
The markets are expecting increased support from the economy.
“We expect further policy easing on the fiscal front to stimulate demand, given downward pressures on growth and uncertainty about the pace of the recovery,” Goldman Sachs analysts wrote in an obligation on Friday. ($1 = 6.6980 Chinese yuan renminbi) (Reports from Beijing and Shanghai offices; Writing: Marius Zaharia; Editing: William Mallard)