This unusual silence cast a shadow over the otherwise bustling center for finance, manufacturing, and trade.
The Shanghai omicron epidemic is just one in a series of outbreaks across China that are testing the government’s ability enforce a strict “zero COVID” strategy while not disrupting the economy or people’s lives every day.
Many shops had closed and pedestrians were scarce even in the part of the city that was open. To limit disruption, the lockdown will be conducted in two phases. It will begin with the Pudong financial area and the adjacent areas on Shanghai’s east side of Huangpu River.
Zhang Meisha took a morning run along the Bund on the river’s west bank. She said that she wanted to get more sunlight before the lockdown moved to Puxi. The promenade was lined with historic buildings from the past and only a few tourists remained.
Zhang spoke of the Bund’s red and yellow tulips. It’s a shame! “I hope that the spring of Shanghai will be here for us.”
The financial markets are now more anxious about Russia’s war against Ukraine and the U.S. Federal Reserve’s efforts to reduce inflation by raising interest rates, as well as other global challenges.
According to Michael Every, Rabobank, market reactions such as Monday’s London oil price drop of 7% don’t reflect “true reality” of the situation. However, investors were already concerned about China and the global economic outlook.
He said, “We have a mountain of problems to worry over, and this foothill is only one among many.” It’s easy to see the history of COVID lockdowns in the past. This interfaces with many other issues.”
Trade and industry are more at risk if there is a halt to activity at Shanghai’s port. According to state media, the world’s largest port handled normal cargo volumes. Managers were making sure that ships “can call normally” at this port. General Motors Co. and Volkswagen AG both stated that their Shanghai factories are operating as normal.
A surge in cases in China this month is being attributed to the new subvariant of the omicron BA.2. Jilin, in the northeast, has been the most affected.
Two deaths have been reported. This brings the total number of cases since the outbreak to 4,638. The ruling Communist Party has praised the relatively low death toll as well as the case count for proving the wisdom of its zero COVID approach.
Hong Kong has seen a decline in new cases outside of China. This is due to a wave that caused more than 7,000 deaths. In the last 24-hour, 7,596 cases were reported in this semi-autonomous metropolis of 7.4 millions people.
On Monday, Shanghai saw 4,477 new cases. Only 96 of these were symptomatic. Under the zero-COVID approach, Gymnasiums and Exhibition Centers have been transformed into sprawling centers for positive cases.
After four days, the measures that kept Pudong residents in their homes and required mass testing were lifted. The Puxi area, on the other side of the river, will be locked down at that point.
Puxi’s Nanjing Road pedestrian shopping streets were closed on Tuesday. Take-out was not available at all restaurants, so there was a line outside McDonalds waiting for customers to order.
After reports of food shortages and panic buying on Sunday, authorities are working to ensure food supply.
The Shanghai lockdown is expected to be the largest in China’s fight against the virus. Thousands of people have been held in their homes in China for many weeks, while millions are still in quarantine in large cities.
In hazmat suits, government workers and 68,000 volunteers are stationed at checkpoints surrounding residential properties that have been sealed off with traffic dividers or improvised barriers.
Although the central government called for a more targeted approach to the system and some tweaking, the decision not to lock down Shanghai demonstrates the continued reliance on extreme measures.
Authorities have not only used a two-phase approach but also provided specific end dates for Shanghai lockdowns, which is unlike other cities.
Macquarie Group, a financial services company, said that the Shanghai lockdown suggests China will continue with its zero-COVID strategy until the Communist Party’s once-every five-year congress in the fall.
Authorities have stressed the importance of stability during the build-up to the event. Xi Jinping will be granted a third five year term as party leader, breaking with previous practice.
China boasts an 87% vaccination rate, but this percentage is lower for seniors who are more susceptible to the virus.
According to Macquarie Group, China should be capable of containing the virus within the next few days, given the effectiveness and efficiency of lockdowns.
The report stated that COVID poses a significant growth downside risk for the remainder of the year as lockdown is very expensive. It also said that consumers spending and the housing market would take the most severe hits.
Wang Hui, who owns a shop in the Bund area, stated that high rents and a shortage of customers could lead to him losing his business.
Wang stated, “I don’t know how long we can last.”
