Shanghai is a major financial centre and port as well as a hub for manufacturing electronics and cars.
"We have seen PMI data, which shows that both manufacturing and services sectors are actually hit hard. And that has not included the Shanghai lockdown. So I think qualitatively we're seeing more downside pressure for the first and second quarters of GDP data," according to Peiqian Liu, China economist for NatWest Markets.
With the number of coronavirus cases rising, there could also be more trouble ahead if there are further lockdowns, especially for small business owners. "So I think the service sector is not only facing a short-term pressure from a three-week lockdown from Shenzhen or a one-week lockdown from Shanghai, but facing much more pressure from the uncertainty that's going down the road with current set of Covid management policies," Ms Liu said.
"The policy has been a political source of legitimacy. The low levels of infections and deaths in China are often compared to other countries in the domestic media. As a result, the majority of the population within China still favour the zero-Covid policy, despite the increasing economic costs," Mr Xu said.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China extends Shanghai coronavirus lockdown as frustration mounts over strict 'zero-COVID' policyChina's most populous, wealthiest city was supposed to be shut down in 2 phases for about a week. That's been extended, and it could be extended again.
Read more »
Shanghai lockdown triggers complaints as COVID cases riseCOVID-19 cases in China’s largest city of Shanghai are still rising with millions isolated at home under a sweeping lockdown, as the draconian “zero tolerance” approach to the pandemic increasingly draws complaints from residents fed up with the restrictions.
Read more »
Biden rescinds Title 42, Trump-era restrictions at U.S.-Mexico borderThe limits were revoked after careful consideration of current COVID-19 prevention measures.
Read more »
COVID-19 cases rise in Shanghai with millions under lockdownBEIJING (AP) — COVID-19 cases in China’s largest city of Shanghai are still rising as millions remain isolated at home under a sweeping lockdown. Health officials on Sunday reported 438 confirmed cases detected over the previous 24 hours, along with 7,788 asymptomatic cases.
Read more »
Shanghai asks entire city to self-test for COVID as frustration growsShanghai on Sunday ordered its 26 million residents to undergo two more rounds of tests for COVID-19 as public anger grows over how authorities in China's most populous city are tackling a record coronavirus surge.
Read more »