The severe COVID-19 lockdowns in Shanghai and other cities across China are dragging the world’s second-largest economy, threatening key growth targets and causing international negative impact in an era of global instability. Parts of Shanghai have been closed for more than two weeks, with residents unable to leave their homes for any reason. Many reported running out of food and other goods in the midst of a supply chain crisis, and finding it difficult to access COVID-free medical care – even for life-threatening conditions. Some neighborhoods began easing restrictions this week, but the majority of the city’s 26 million residents remain locked up. On Wednesday, Shanghai reported 26,330 new cases, a daily record, as officials warned that community outbreaks had not yet been curtailed despite tight controls. “There is a strong sense of uncertainty throughout the city and it is fueled by supply shortages, endless lockdowns and a great fear of being sent to one of the central quarantine camps,” said Bettina Schoen-Behanzin, Shanghai President of the European Chamber of Commerce. Union in China. Other cities also face severe restrictions. A recent analysis by financial research firm Gavekal found that of the top 100 Chinese cities by GDP, all but 13 had imposed new quarantine regulations – and “the tension is growing.” The vast majority of goods in China are transported by land and the new inspections are causing chaos, with truck drivers facing frequent inspections, unforeseen test requirements and the constant threat of quarantine. “Prolonged lockdowns in Shanghai and highway checks ordered by local authorities in some provinces are seriously disrupting logistics in China,” Tommy Wu, a Hong Kong-based Oxford Economists analyst, wrote in a note Wednesday. “We believe that even if highway controls are lifted in the coming weeks, the disruption will take some time to clear up and affect industrial production and exports in April and May – if not more.” On Monday, China’s State Council issued a directive banning roadblocks calling for “more effective control of COVID-19 along transport routes.” However, despite claims in government media that this had helped alleviate supply chain difficulties, there were still widespread reports of long delays and drivers refusing to travel to certain areas for fear of being quarantined. Over the past two years, many provincial and local officials accused of mishandling epidemics have lost their jobs, and with Beijing still advocating a strict “zero-COVID-19” approach across the country, there are strong motives for wrongdoing. side of additional controls, regardless of recent instructions. Nick Marro, chief economics analyst at the Economist Intelligence Unit, said Beijing had stressed “all the time that at the end of the day, what wins is health care policy, more than economic policy or anything else.” Last month, China set a modest annual growth target of “about 5.5 percent,” but most analysts expect it to be difficult to meet. On Wednesday, China reported a 10.7% year-on-year increase in foreign trade in the first quarter, but that probably does not reflect the recent turmoil that began in late March. Top Chinese officials seem increasingly worried. Prime Minister Li Keqiang warned this week that “declining economic pressure has increased further.” He urged officials to “strengthen the sense of urgency” in ensuring economic stability, speeding up tax and fee reductions and raising public money on infrastructure, especially for construction, a Beijing-favored tool for boosting economic development. Mr Marro said: “We will see a continuous expansion of the public sector in a way that has implications for productivity, debt service, market share – all these things that China has been trying to tackle for decades, but continues to be diverted from other policy priorities. “ The current measures, especially the lockdown in Shanghai – the world ‘s busiest container port – are also exacerbating an already weakening global economy. Officials have tried to maintain port operations as usual, and some factories have had bunkers at the construction site, but it is unclear how long these measures may take, with some companies such as Apple and Tesla having already stopped work at Shanghai. “We hear more and more that some workers do not volunteer, as there is no clear end to lockdowns and they do not want to stay at the construction site for weeks and sleep in the factory or in an office,” said Schoen-Behanzin, president European Chamber, he told a roundtable media this week. Aside from supply chain issues and economic uncertainty, any slowdown in China’s domestic economy “also has implications for many markets in Asia and beyond,” Mr Marro said, given the size of China’s consumer base. For the most part, despite rising economic costs, Beijing has shown no inclination to move away from a strict COVID-19 approach, leaving the country increasingly isolated internationally and sparking anger even in a previously widely held population. such measures. In Shanghai, many videos of people arguing with officials have gone viral, and some residents trapped in their apartments have started shouting from their windows and balconies in frustration. One neighborhood even developed a drone in an apparent attempt to quell such protests. He played a recorded message instructing the inhabitants to “control your soul’s desire for freedom” and return inside. The Chinese commercial capital, Shanghai, warned on Wednesday that anyone violating COVID-19 quarantine rules would be dealt with severely, and also gathered citizens to defend their city as the number of new cases rose to more than 25,000. Olivia Chan has more. Reuters But “the vast majority of people in China support zero COVID,” said Frank Tsai, founder of Shanghai-based consulting firm China Crossroads. He noted that Beijing’s approach had been extremely successful in reducing the virus and keeping deaths to a minimum, while allowing much of the country to function normally from mid-2020 – albeit with travel restrictions, especially internationally. “Most of China has never been locked up, so for them the disadvantages of this policy are still only theoretical,” Mr Chai said. Reporting on lockdowns and supply chain issues is also limited to China by strict media controls. Government stores often challenge the adoption of measures that are more in line with the rest of the world, comparing such approaches with the “lying down” and allowing the virus to be out of control. Nor is the government’s fear of relaxation unfounded. About 90 percent of people in China are vaccinated, but this is very common for younger people, especially when it comes to getting a booster vaccine, which is vital for protection against the Omicron variant. Only about half of people aged 60 and over have received three piercings, making them vulnerable. Hong Kong recently showed what happens when Omicron rages in an area with poor vaccination rates. A similar situation in China could see tens of thousands of deaths and severe pressure on the country’s healthcare system, possibly to the point of collapse. The risk of such a possibility in a country where the government gives an absolute premium to stability – and has made the restriction of COVID-19 a key point of pride – is probably considered too costly, regardless of the economic damage caused by the current approach. Reported by Alexandra Lee. 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