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Corona 19: China’s ‘economic capital’ Shanghai is completely closed… Will the global economy be hit?

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photo source, Reuters

picture explanation,

Citizens are being tested at the temporary Shanghai COVID-19 testing center behind the yellow wall

On the 27th (local time), China announced the largest lockdown of Shanghai since the outbreak of the novel coronavirus (COVID-19) began two years ago.

While all residents are tested for COVID-19, the Shanghai area will enter a two-stage lockdown for nine days.

Although the number of new cases is not very large by some international standards, Shanghai, China’s financial center, has been working to contain the spread of the infection within the city for almost a month.

In an effort to avoid economic losses, the Chinese authorities have so far not completely blocked the city of Shanghai with a population of 25 million.

However, on the 26th, when the number of daily confirmed cases in Shanghai reached the highest level during the COVID-19 pandemic, it seems that the existing policy was changed.

This measure will be carried out in two phases, including the blockade of the eastern part of Shanghai from March 28 to April 1 and the western area from April 1 to 5.

Authorities have ordered that public transport services will be suspended during the lockdown, and that businesses and factories in the city must also shut down or operate remotely.

Shanghai authorities released the relevant guidelines on the official social media WeChat account, asking residents to “support, understand and cooperate with the city’s epidemic prevention and control activities.”

While there were still some cases where movement within the region was possible, there are few administrative regions in China that have not been impacted by lockdown measures during the COVID-19 pandemic. However, given its high population density, Shanghai is the largest single city to have a lockdown so far.

Shanghai is China’s ‘economic capital’ and, in many indicators, the ‘largest city’ in China. However, as the Chinese government struggles to contain the spread of the Omicron mutant virus, it is now one of the most severe areas of the spread.

The Chinese authorities have so far taken the position that Shanghai, the port city and financial center of eastern China, is difficult to contain because of its high economic value. The blockade will also be implemented in two phases with a staggered streak, so half the city will remain functional while the other half is closed.

In other cities in China, although the number of confirmed cases of COVID-19 is relatively low, millions of residents have been locked in city lockdowns.

Analysis: Robin Brandt, BBC Shanghai Correspondent

In Shanghai, where the number of confirmed cases is soaring for the second week, there are areas that have turned into ghost towns. Now the streets of the city are crowded with residents buying things in a panic.

As I was walking down the street on the morning of the 28th, I saw residents lining up outside the store to stock up on things before the lockdown began.

A new subway station that opened a few months ago in my area will also close on the 28th. Public transportation will be suspended, and all residents will be required to cooperate with COVID-19 screening.

About 25 million residents will be affected by the total lockdown. The eastern part of Shanghai will be locked first, and the western part later next week.

Other Chinese cities were locked down in Wuhan at the beginning of the pandemic and Xi’an before Christmas last year. And now Shanghai, China’s ‘commercial and financial capital’, will be closed.

Until just a few days ago, the authorities’ position was that Shanghai was too large and difficult to close because it was a major economic hub. And now, residents are concerned that the nine-day lockdown will be sufficient.

Challenges of ‘Zero Corona’ Policy

Of course, it is small compared to the situation in some countries, but the number of corona19 confirmed cases in China is rapidly increasing. As a result, China’s ‘zero corona’ policy faces significant challenges.

The ‘Zero Corona’ policy is a policy that does not allow even a single infection through rapid containment measures and strong and aggressive restrictions, and it is different from the policies of most countries that want to live together with the coronavirus to some extent.

However, the strong contagiousness and relatively low mortality rate of the omicron mutant virus raises questions about whether the ‘zero corona’ policy is sustainable in the long term.

Some Shanghai residents complained about the seemingly endless cycle of testing for COVID-19, suggesting that the price to be paid for maintaining the now ‘zero-corona’ policy is too high.

China’s health authorities said on the 27th that more than 4,500 people had been infected in the community.