Shanghai to Lift ‘Unreasonable’ Curbs on Firms, Beijing Eases Restrictions

SHANGHAI/BEIJING, KOMPAS.com — Shanghai said on Sunday, May 29 “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 stabilized.

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 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 the 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 $15 billion this year.

Also read: China Sends Military, Doctors to Shanghai to Test 26 Million Residents for Covid-19

“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 “unreasonable” Covid restrictions on businesses would be lifted.

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

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 implement rigorous disinfection. Most businesses in the city are still shut.

All “white lists” would be abolished, Wu said.

Also read: WHO Chief: The Pandemic Is ‘Most Certainly Not Over’

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 stabilize and improve,” Yin said, adding Shanghai’s strategy was “pivoting towards normalized prevention and control.”