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Shanghai to lift “unfair” barriers to business, Beijing eases restrictions

Shanghai said on Sunday that an “abnormal” barrier to business would be removed from June 1 as it looks set to lift the closure of COVID-19, while Beijing reopened some of its public transport as well as some shopping malls and other places when infections became stable. .

The Chinese Business Center, 25 million people, aims to end a two-month closure from Wednesday that has severely damaged the economy and seen many people lose income, struggle to procure food and deal with isolation.

Painful coronary heart disease in major Chinese cities runs counter to the trend seen around 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 companies to resume operations from June 1. The city also launched measures to support its economy, including lowering taxes on car purchases, speeding up the issuance of municipal bonds and speeding up the approval of real estate projects.

Shanghai will ask banks to renew loans to small and medium-sized enterprises worth a total of $ 15 billion this year.

“We will fully support and plan the resumption of work and production of companies in various industries and sectors,” Deputy Mayor Wu Qing told reporters, adding that “unfair” COVID restrictions on companies would be lifted.

Wu did not provide information on what restrictions would be lifted.

In April, Shanghai began publishing a “white list” of key manufacturers in the automotive, life sciences, chemicals and semiconductors licensed to resume operations.

But many of the priority companies had suppliers who could not reopen, so they were still facing organizational bottlenecks.

Many industry executives also complained about burdensome COVID sidewalks, as they had to find sleeping accommodation for workers trying to isolate and implement strict disinfection. Most businesses in the city are still closed.

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

Earlier in the day, city council spokeswoman Yin Xin said Shanghai would ease exam requirements from Wednesday onwards for people who want to enter public areas to encourage them to return to work.

“The current epidemic situation in the city continues to stabilize and improve,” Yin said, adding that Shanghai’s policy was “to move towards normal prevention and control.”

People entering public places or taking public transportation would have to show a negative PCR test taken within 72 hours, up from 48 hours previously.

Bus service within the Pudong New Area, home to Shanghai’s largest airport and the main financial district, would begin in full on Monday, officials said.

Plaza 66, a shopping mall in downtown Shanghai that houses Louis Vuitton and other luxury brands, reopened on Sunday.

Authorities have been slowly relaxing the sidewalks, with a focus on getting production back on track.

More people have been allowed to leave their homes and more businesses can reopen, although many residents are mostly confined to housing complexes and most shops are only open for delivery services.

Private cars are not allowed without permission and most of the city’s public transport is closed. Authorities have not yet announced detailed plans for how the closure will be lifted.

Fitness centers and libraries

In the capital, Beijing, libraries, museums, theaters and gyms were allowed to reopen on Sunday, albeit with a limited number of people, in neighborhoods that have not seen COVID-19 cases in the community for seven days in a row.

People are seen in Sun Park the day it reopened after the government lifted some of the COVID-19 restrictions in Beijing, China, on May 29, 2022.

Fangshan and Shunyi provinces will put an end to work-related rules at home, but public transport will largely resume in the two districts as well as in Chaoyang, the city’s largest city. However, it is forbidden to eat in restaurants all over the city.

Shanghai announced more than 100 new COVID cases on Sunday, while Beijing recorded 21, both in line with declining national trends.

China’s economy has shown signs of recovery this month following a slump in April, but activity is weaker than last year and many analysts expect a contraction in the second quarter.

The strength and sustainability of each recovery will largely depend on COVID, as highly contagious Omicron varieties prove difficult to eradicate and risk recurrence.

Investors are worried about the lack of a roadmap to abandon the zero-COVID policy of ending all emergencies at almost any cost, President Xi Jinping’s signature policy. He is expected to secure an unprecedented third leadership term at the ruling Communist Party’s congress this autumn.

Markets expect more support for the economy.

“We expect fiscal policy to relax further to boost demand, given pressure to cut interest rates and uncertainty about the pace of recovery,” Goldman Sachs analysts said in a statement on Friday.

Shanghai to lift “unfair” barriers to business, Beijing eases restrictions

Source link Shanghai to lift “unfair” barriers to business, Beijing eases restrictions

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