Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Shanghai to lift 'unreasonable' curbs on firms, Beijing eases restrictions

Coronavirus May 29, 2022 14:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Workers in protective suits rest on a street during lockdown, amid the coronavirus disease (COVID-19) outbreak, in Shanghai, China, May 28, 2022. REUTERS/Aly Song

By Emily Chow and Roxanne Liu

SHANGHAI/BEIJING (Reuters) -Shanghai said on Sunday "unreasonable" curbs on businesses will be removed from June 1 as it looks to lift its COVID-19 lockdown, while Beijing reopened parts of its public transport as well as some malls and other venues as infections stabilised.

The Chinese commercial hub of 25 million people aims to essentially end from Wednesday a two-month lockdown that has severely damaged the economy and seen many residents lose income, struggle to source food and to cope with the isolation.

The painful coronavirus curbs in major Chinese cities run counter to trends seen in the rest of the world, which has largely tried 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 also launched measures to support its economy, including reducing some taxes on car purchases, accelerating issuance of local government bonds, and speeding up approvals of real estate projects.

Shanghai will ask banks to renew loans to small and medium firms worth a total of 100 billion yuan ($15 billion) this year.

"We will fully support and organise the resumption of work and production of enterprises in various industries and fields," vice mayor Wu Qing told reporters, adding that "unreasonable" COVID restrictions on businesses would be lifted.

Wu did not give details of which restrictions would be cancelled.

Shanghai in April started publishing "white lists" of important manufacturers in the auto industry, life sciences, chemicals and semiconductors allowed to resume operations.

But many of the priority companies had suppliers who were unable to reopen and so they still faced logistical bottlenecks.

Many industry executives also complained about onerous COVID curbs, as they needed to find sleeping quarters for staff trying to isolate and to implement rigorous disinfection. Most businesses in the city are still shut.

All "white lists" would be abolished, Wu said.

Earlier on Sunday, city government spokeswoman Yin Xin said Shanghai would ease testing requirements from Wednesday for people who want to enter public areas, to encourage a return to work.

"The current epidemic situation in the city continues to stabilise and improve," Yin said, adding Shanghai's strategy was "pivoting towards normalised prevention and control".

People entering public venues or taking public transport would need to show a negative PCR test taken within 72 hours, up from 48 hours previously.

Bus services within the Pudong New Area, home to Shanghai's largest airport and the main financial district, would fully resume by Monday, officials said.

Plaza 66, a mall in central Shanghai that hosts Louis Vuitton and other luxury brands, reopened on Sunday.

Authorities have been slowly relaxing curbs, with a focus on getting manufacturing going again.

More people have been allowed to leave their homes and more businesses can reopen, though many residents remain largely confined to housing compounds, and most shops are only open for delivery service.

Private cars are not allowed out without approval, and most of the city's public transport is shut. Authorities have yet to announced detailed plans for how the lockdown will be lifted.

GYMS AND LIBRARIES

In the capital Beijing, libraries, museums, theatres and gyms were allowed to reopen on Sunday, though with limits on numbers of people, in districts that have seen no community COVID cases for seven consecutive days.

The districts of Fangshan and Shunyi will end work-from-home rules, while public transport will largely resume in the two districts as well as in Chaoyang, the city's largest. Still, restaurant dining is banned throughout the city.

Shanghai reported just over 100 new COVID cases on Sunday, while Beijing recorded 21, both in line with a falling trend nationwide.

China's economy has shown signs of recovery this month following an April slump but activity is weaker than last year and many analysts expect a second-quarter contraction.

The strength and sustainability of any recovery will depend largely on COVID, with the highly transmissible Omicron variant proving hard to wipe out, and prone to comebacks.

Investors have worried about the lack of a roadmap for exiting the zero-COVID strategy of ending all outbreaks at just about any cost, a signature policy of President Xi Jinping. He is expected to secure an unprecedented third leadership term at a congress of the ruling Communist Party in the autumn.

Markets expect more support for the economy.

"We expect policies to ease further on the fiscal front to boost demand, given downward pressures on growth and the uncertainty of the recovery pace," Goldman Sachs (NYSE:GS) analysts wrote in a Friday note.

($1 = 6.6980 Chinese yuan renminbi)

Shanghai to lift 'unreasonable' curbs on firms, Beijing eases restrictions
 

Related Articles

Russia scraps remaining COVID restrictions
Russia scraps remaining COVID restrictions By Reuters - Jul 01, 2022

(Reuters) - Russia said on Friday it was ending all restrictions to combat the spread of COVID-19, including the requirement to wear masks, citing a steady decline in deaths from...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email