As millions of Shanghai residents line up for coronavirus tests in the closed-down metropolis, Chinese authorities are promising tax cuts for shopkeepers and to keep its busy port functioning to limit disruptions to industry and trade.
Operations at Shanghai airports and train stations were normal, according to the online news outlet The Paper. Bus service into and out of the city of 26 million was suspended earlier. Visitors are required to show a negative virus test.
Louis Kuijs, chief Asia-Pacific economist for S&P Global Ratings said Chinese officials are trying to ensure goods get to customers and protect supply chains. He noted that after previous shutdowns, factories caught up with orders by working overtime.Despite fears that lockdowns in China will slow the recovery from last year’s global supply chain problems, “The impact on supply chains is not as big as many outside observers fear,” Kuijs said.
General Motors Co. and Volkswagen AG said their factories in Shanghai were operating normally. GM said in an email it was carrying out “contingency plans on a global basis” with suppliers to reduce COVID-related uncertainties. Nearby, the riverfront Bund, Shanghai’s most famous vista, was quiet and empty of its usual crowds of pedestrians.