Shanghai wakes up from lockdown
Omicron paralyzes China’s industry
5/16/2022 5:26 am
As the only country in the world, China is still pursuing the zero-Covid strategy. But more and more lockdowns and mass tests have consequences: those who sit isolated at home cannot work.
Corona restrictions and ongoing supply bottlenecks slowed down Chinese industrial production in April. Production in the world’s second-biggest economy shrank 2.9 percent year-on-year last month, data from the National Bureau of Statistics showed. This is a significant decrease from the 5.0 percent increase in March. Analysts polled by Archyde.com had expected growth of 0.4 percent.
Businesses in China are once again struggling with supply shortages and higher costs as a result of strict lockdowns to contain an omicron outbreak. Retail cannot serve as a growth engine either: Consumption shrank by 11.1 percent in April compared to the previous year. Analysts polled by Archyde.com had expected a 6.1 percent decline after a 3.5 percent contraction in June. The government in Beijing has tightened social restrictions to contain the virus, which is particularly affecting the service sector.
After all, there are signs of a slight relaxation: According to government information, the Chinese financial metropolis of Shanghai should gradually return to normal by June 1st. In 15 of the city’s 16 districts, no further corona cases have occurred outside of the quarantine areas, said Deputy Mayor Zong Ming. Supermarkets and pharmacies will reopen on Monday, and schools should gradually resume face-to-face classes. Movement restrictions will initially remain in place to prevent risks of a renewed outbreak. Unlike other countries, China has a strict zero-Covid strategy.