Economic recovery

With the impact of the pandemic putting pressure on local government budgets across China, the latest wave of salary reductions for civil servants has taken hold in Shanghai, with no quarterly bonuses given out in some cases. China’s financial capital has not been doing well since the two-month pandemic lockdown took a heavy toll on businesses and general operations. Can the city recover?

Zaobao correspondent Chen Jing observes that while the lockdown in Shanghai has been lifted, people are still nervous that the sporadic Covid-19 cases could trigger another lockdown. Regulations remain strict and prohibitive, so people are hesitant to say that things have returned back to normal. Furthermore, with the 20th Party Congress coming up, Shanghai’s situation will be a bellwether for the country’s economic recovery.

While some people are rejoicing as Shanghai gradually resumes daily life and business operations, the lockdown experience has traumatised others that are looking to leave the city and never return. Zaobao’s Shanghai correspondent Chen Jing finds out more.

The RMB's recent dramatic weakening did not come as a surprise to many. As stringent Covid-19 measures gradually ease, along with possible relaxations of policies in the real estate sector, could the worst be over for China's economy?

On 25 May, Chinese Premier Li Keqiang chaired a teleconference on China’s economy with 100,000 attendees. The sheer scale of the meeting and rhetoric used indicates a sense of urgency. The government is keen to convey that it is well aware that the Chinese economy is faring worse than in 2020 when the pandemic first hit and that it has all hands on deck.

The swift way that districts and communities were shut down in Shanghai and Beijing is a reminder that the authorities will not hesitate to take drastic steps to stamp out Covid-19, whatever the human cost. Not only that, the end may not be in sight even by the summer of next year.

Waves of Covid-19 outbreaks have dealt a big blow to China's economy, with strict anti-epidemic measures affecting businesses, exports and trade. Lockdown uncertainties have also sparked fears of increased competition with foreign manufacturers and a global supply chain restructuring away from China. Caixin surveys the challenges ahead.

Even as Shanghai aims to reach “social zero Covid” in the coming days, it has moved to resume key manufacturing industries and businesses. Undoubtedly, notes Zaobao correspondent Yu Zeyuan, the authorities are well aware that Shanghai is China’s economic and political nerve centre and that any disruption could easily spell trouble.

Zaobao’s China Desk analyses the impact of the recent China Eastern Airlines crash, touted as China’s worst aviation disaster since 2010. This comes at a time when China has been improving its flight safety record and its airlines are struggling to recover from the losses suffered from the Covid-19 slowdown. Will the aviation industry regroup and come back stronger from this?