Shanghai lockdown: daily cases fall by the most in two months on eve of city’s reopening, auguring well for small businesses

Shanghai’s new daily Covid-19 cases dropped by the most in two months on the eve of the formal end of lockdowns in China’s commercial and financial hub, auguring well for the millions of businesses that are eagerly gearing up to resume their operations.

New infections plummeted by 53.7 per cent to 31 in the past 24 hours, the biggest one-day percentage decline since March 6, according to data released on Tuesday. Cases that showed symptoms climbed by 50 per cent to nine, the second day that the number had stayed in single digit, while the death toll remained zero for the fourth day.

“I burst into tears last night after receiving the go-ahead to restart operations” from the local authorities, said Wang Xuliang, who owns the Yi Mian Qian restaurant chain in Shanghai. “The end of the lockdown marks the rebirth of my business.”

About 22.5 million people, or 90 per cent of Shanghai’s population of 25 million residents, currently live in low-risk “precautionary zones” that have been infection-free for 14 days, can leave their compounds and ride on public transport which has been mostly restored. The Chinese government has earmarked 300 billion yuan (US$45 billion) of tax breaks, financial incentives and spending to restore economic growth in a city, whose lockdown had strained supply chains from Europe to Japan, and driven thousands of businesses to the brink of collapse.

All 2.67 million registered businesses in Shanghai will be allowed to resume operations on June 1, without requiring prior approval from the health authorities, according to the government’s announcement on Sunday.

“After all, it is the millions of small firms that provide the majority of jobs in the city,” said Yin Ran, a Shanghai-based angel investor. “Many of them are on the brink of collapse and need strong incentives from the local authorities to keep their businesses alive.”