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Shanghai returns to … normalcy from June 1 after the hard lockdown

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THE Shanghai presented the plans today for the end of a painful lockdown for Covid-19 which lasted more than six weeks, severely affecting the Chinese economy, and to return to a smoother routine from June 1st.

In the clearest schedule so far, the deputy mayor Zong Ming stated that Shanghai will “Open” again in phases, with travel restrictions remaining largely in place until 21 May to prevent a re-outbreak of infections, before there is relaxation.

«From June 1st until the middle and end of June, if the risks for the outbreak of infections are under control, we will fully implement epidemiological prevention and control, normalize management and fully restore normal production and life in the city.“, She said.

However the announcement was accepted with caution by some residents of Shanghai, who have been frustrated many times by the changing timetables for lifting the restrictions.

«Shanghai, Shanghai… .supposedly I still believe you?“, Said a user on the social networking platform Weibo.

Shanghai’s tight lockdown and COVID restrictions on hundreds of millions of consumers and workers in dozens of Chinese cities have caused economic woes in a number of industries, raising fears that the economy could shrink in the second quarter.

Restrictions, in contrast to what is happening in the rest of the world where COVID rules are being lifted despite the increase in infections, are also causing cracks in global supply chains and international trade.

Data released today showed that industrial production and retail sales in China declined in April at the fastest pace in more than two years, exceeding market expectations.

Recent figures have been ominous: Revenues in catering services fell by 22.7%, car sales fell by 47.6%, sales of real estate by value fell by 46.6%.

Economic activity may have improved somewhat in May, analysts say, and the government and central bank are expected to use more support measures to speed things up.

But the strength and duration of the recovery are uncertain given China’s “zero COVID tolerance” policy of eliminating outbreaks at almost any cost.

«The data paint a picture of a stagnant economy and an economy in need of more aggressive support measures and a rapid easing of COVID restrictions, none of which appear to be coming in the near future.“, Commented o Mitul Kotetsa, Head of Emerging Markets Analysis at TD Securities. A weaker growth in China would “fuel a further deterioration in the global economic outlook,” he said.

In the Beijingthe detection of dozens of new COVID cases every day for the last three weeks shows how difficult it is to eliminate even small outbreaks.

The Chinese capital has not imposed a universal exclusion across the city, but has tightened restrictions to the point where traffic was similar to those in Shanghai, which is under lockdown, according to data from Chinese internet giant Baidu.

Yesterday, Beijing extended teleworking guidelines to four areas. Among other measures, it has banned seated customers in restaurants and restricted public transportation.

“Please, do not lie”

In Shanghai, the deputy mayor said the city will start reopening supermarkets, grocery stores and pharmacies from today but travel restrictions will remain in effect until at least May 21.

From today, train services and domestic flights will be gradually restored, said the deputy mayor. From May 22, the bus routes will be gradually restored but the citizens will have to show a negative COVID test of the last 48 hours in order to use the means of transport.

Throughout the lockdown, Shanghai has been forced to repeatedly deny hopes of ending the ordeal. Authorities expected it to last only until April 5, when it was imposed on March 27.

«Please do not lie to us this time“, Another Weibo user reported.

Shanghai announced less than 1,000 new cases for May 15, all within areas under strict control.

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