Shanghai aims for business as usual but hurdles remain

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China’s richest and most international city is trying to return to business as usual after a two-month lockdown, but some restrictions will remain in place.

Shanghai authorities on Sunday pledged to allow all businesses to open up from Wednesday. The city's deputy mayor, Wu Qing, announced the easing of restrictions at a press conference, alongside a raft of 50 new measures being taken to revive the city's battered economy.From June 1, businesses will no longer need so-called"white list" approval to have employees working on site.

Last week, UBS downgraded its GDP estimate for 2022 to 3%, much lower than China's official target of 5.5%.How China's lockdowns are taking a toll on global companies"The lingering restrictions and lack of clarity on an exit strategy from the current Covid policy will likely dampen corporate and consumer confidence and hinder the release of pent-up demand," the bank's economists wrote in a report.

 

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