Shanghai Deputy Mayor Zong Ming said that the Shanghai lockdowns will be tapering off in the next few weeks.
This plan to reopen the city comes after weeks of government-related shutdowns as part of China's "zero COVID" policy, which have battered the city and nation economically, Reuters reported.
"From June 1 to mid- and late June, as long as risks of a rebound in infections are controlled, we will fully implement epidemic prevention and control, normalize management, and fully restore normal production and life in the city," Ming said, as reported by Reuters.
The shutdown has wreaked havoc on the city's economy across all sectors of trade, Reuters reported. Industrial output and retail sales in China were low in April. In addition, catering revenue fell 22.7%, property sales by value dropped 46.6% and automobile sales fell 47.6%. Zero cars were sold in Shanghai, a city with a population of 25 million, during the month of April.
China is predicted to take action to attempt to stimulate the stalled economy, but experts are uncertain about an economic rebound.
"The data paint a picture of a stalling economy and one in need of more aggressive stimulus and a rapid easing of COVID restrictions, neither of which are likely to be forthcoming anytime soon," TD Securities analyst Mitul Kotecha told Reuters.
China's export growth has been trending downward and is now at the worst it's been since two years ago, which has hurt the yuan's value in relation to the dollar, State Newswire reported. This trajectory is not looking to change, as factory closures and quarantined workers have been a detriment to manufacturing supply and demand.
Beijing has been tightening restrictions due to COVID-19 in the meantime, which is expected to further exacerbate existing supply chain issues created by the strict lockdowns, Globe Banner previously reported.