Shanghai opens again, but impact of Chinese corona policy remains large | NOW

The Chinese port city of Shanghai will reopen from June 1 after a long, strict lockdown. The relaxations started in mid-May. At the same time, Beijing is not that far yet, where the measures are being tightened. China’s strict corona policy affects the entire economy and trade, news agency reports Reuters Thursday.

Most of Shanghai’s 25 million residents will be able to go out again from June 1. Shopping centers and department stores will open their doors again, but many shops and restaurants will also remain closed. The obligation to work from home will also continue to apply for the time being.

Primary and secondary school pupils can return to school from June 6. The higher classes are allowed to return to school from 13 June. College and university students are required to attend classes at home for the remainder of the school year.

On Wednesday, Shanghai closed a makeshift hospital because it was no longer in use. 338 new infections were reported, the smallest number since mid-March. After nearly two months of lockdown, the economy is expected to pick up again. Shanghai is seen as the engine of the Chinese economy.

Corona policy in Beijing further tightened

In the meantime, the COVID-19 measures in the capital Beijing have been further tightened. The quarantine obligation has been increased and a stricter home working policy also applies. The notification obligation was invoked via a text message if residents have contracted a possible infection.

In addition, there will be a crackdown on residents who ignore the measures. Some residents are afraid that location data of citizens will be recorded via telephones. As a result, they do not dare to go outside certain areas and fled before this stricter policy was introduced.

New massive test rounds are being launched in several cities. The goal is to test all inhabitants of the cities in order to achieve the zero target. This objective means that the aim is to achieve zero infections.

Chinese lockdown has global impact

The closure and introduction of restrictions in Shanghai and many other major cities is in line with China’s zero target. This approach has wreaked havoc on the global economy and product supply.

Government officials express concern about the broader economy. A lot of economic support is expected, because national economic recovery is still a long way off. The central bank said Thursday it will provide more financial aid for companies and sectors that have suffered losses due to the corona pandemic.

Port of Shanghai open again, but many delays

After the lockdown, the port of Shanghai will be fully reopened. It will take a long time to make up for all the arrears. According to Drewry Shipping Consultants, there is a backlog of 260,000 containers that were not shipped from Shanghai in April. It is expected that the port, as well as the problems at the nearby factories, will cause shipping delays well into this year.

Daily container throughput at the port of Shanghai has returned to 95 percent of normal levels, the transport ministry said, according to Chinese state media. The improvements in the port are not yet accompanied by a revival in freight transport. The shortage of drivers and vehicles continues to hamper the delivery of goods to and from the port.

While Shanghai’s lockdown is slowly being lifted, the effects are likely to be felt for months to come. “Even if the lockdowns ended today, the predictability and capacity of the container distribution system would be compromised during the peak summer season,” said Drewry.

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