China's biggest city and global financial hub Shanghai on Sunday registered 26,087 new Covid-19 infections. Despite a stringent lockdown in Shanghai, the coronavirus is spreading dangerously. Shanghai is a trading hub and restrictions in the city not just affects the economy of China but also disrupts supply chains and global growth. The worsening situation of Covid in Shanghai suggests that "the Chinese economy may have to brace for more short-term disruptions in the coming months," said Tommy Xie, head of greater China research at Oversea-Chinese Banking Corp.
Key Points |
1. China's economic growth hampered: Current outbreak of Covid in China's Shanghai affects the economy of China as the economists predict 5% growth this year instead of 5.5%. Stock markets in China fell on Monday amid rising Covid cases.
2. Disruption to Businesses: Containers are gathered at the Shanghai port, facing difficulty in clearing imports due to lack of trucks because of ongoing lockdown in the city. Semiconductor Manufacturing companies are also struggling to get the truck in order to export their finished goods.
3. Although the city is under lockdown for weeks now, 95% of covid cases are still among the people who are already under isolation, municipal government data says.
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4. In a relief to the residents, Shanghai's officials on Monday said that people living in housing compounds that had recorded 0 infections in the past two weeks will be given relief from lockdown restrictions.
5. Despite all the restrictions, cases in other cities of China are also rising with 21 of China's 31 provinces reported new cases on Sunday. 12 asymptomatic cases were also registered in Wuhan city on Sunday. Until April 17, schools are shut in Guangzhou province. People are required to have a negative nucleic acid test done before leaving the city, according to the local government. Additionally vegetable prices also increased 17.2% in March, compared to a drop of 0.1% in February, due to lockdowns.
