Shanghai’s economic activity picks up

Shanghai’s unrest has returned thanks to measures to encourage people to return to stores while maintaining epidemic prevention efforts, manufacturing, retail, tourism and other sectors experiencing a bounce during the Dragon Boat Festival holiday.

“I haven’t seen so many people in the past two months,” a Shanghai resident named Chen Sha told the Global Times on Sunday. Chen said Shanghai’s bustling malls and street markets have quickly returned as the country’s 618 Mid-Year Shopping Festival (June 18) has attracted shoppers looking for bargains.

“At a Suning retail store in Changning District on Friday, televisions, ovens, refrigerators and other items on sale were in the most visible place. Meanwhile, clothing brands such as GAP and Hotwind have offered up to 40% off sales to celebrate business resumption,” Chen said, with long queues also seen at some stores across the country. bubble tea.

As Shanghai is on track to fully restore the normal order of production and social life, the city’s tourism industry has taken a crucial turn during the Dragon Boat Festival holiday (Friday to Sunday). According to data from national online travel agency Trip.com, more than 40 scenic spots in Shanghai have reopened since June 1, and bookings for these destinations through the platform have resumed.

A total of 40,000 tickets were sold on the platform on the first day of the three-day holiday, and the average daily number of tickets sold for Happy Valley Shanghai amusement park increased sevenfold from March, according to the data.

“Shanghai has made solid achievements in terms of resumption of production, with the work resumption rate reaching 80 percent,” Xi Junyang, a professor at Shanghai University of Finance and Economics, told the Global Times on Sunday. . He predicted that business in the city may not fully recover until the second half of June, given the persistence of pandemic control measures in some areas.

To spur a rapid resumption of economic and social activities, Shanghai has rolled out a basket of 50 measures, ranging from encouraging work resumption and stabilizing foreign capital to boosting consumption. Regarding manufacturing and business resumption, the metropolis removed the “whitelist” mechanism and other restrictions on businesses that want to restart.

“All of our four facilities in Shanghai had gradually resumed production before May 7. In addition, our office staff members who were working from home will resume work on Monday,” US manufacturing company 3M told the Sunday. GlobalTimes.

A director of a Shanghai-based medical equipment company that manufactures paracentetic injectors and needles said more than 100 of the company’s workers began inhabiting the factory in mid-March, and its production was therefore not affected. “With smoother shipping, we will speed up exports in the next stage,” the official said.

According to a report by China’s national broadcaster CCTV, all air links from Shanghai have gradually recovered, with the daily cargo volume of major airlines and logistics firms returning to 80 percent of the normal level.

During the dragon boat festival, more than 600 cargo and mail flights cleared customs at Shanghai Pudong International Airport, with the average daily volume nearly back to normal, according to the report.

Despite the rapid restoration of normal economic and social activities in Shanghai, the sudden outbreak of COVID-19 in the country’s crucial financial and manufacturing hub since March has inevitably dampened national economic growth.

Xi forecast the country’s GDP to reach 2.5 to 3.0 percent in the second quarter, calling for extraordinary policies to boost growth.

To boost weak demand, the central government should step up fiscal spending, such as increasing infrastructure investment and distributing cash to low-income families, Xi said, noting that the deficit target the country’s budget could be increased to 3.5% of GDP against 2.8. percent.

Since the beginning of the year, China has rolled out financial support to the infrastructure sector, a stabilizer of the economy.

Wednesday’s State Council executive meeting pledged an additional 800 billion yuan ($119.24 billion) in credit lines to provide financial support for infrastructure projects.

Meanwhile, Chinese local governments are handing out billions of yuan in vouchers and subsidies to support domestic consumption. As part of one such initiative, Shenzhen in south China’s Guangdong province began distributing the third batch of its 400 million consumer coupons over the weekend, which could be spent on offers for the 618 shopping festival.
Source: GlobalTimes

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