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Economics

Shanghai’s Two-Month Lockdown Is Still Rippling Through Economy

  • Recovery taking longer; demand still below pre-curbs levels
  • City-wide restrictions ended June 1 but some controls remain
A checkpoint at a sealed off area due to Covid-19 in the Meilong township of Shanghai, on Aug. 15.
A checkpoint at a sealed off area due to Covid-19 in the Meilong township of Shanghai, on Aug. 15.Photographer: Qilai Shen/Bloomberg

Three months after Shanghai lifted an unprecedented Covid lockdown that lasted more than 60 days, businesses in China’s richest and biggest consumer market are still struggling with a sluggish recovery as lingering restrictions continue to deter people from going about their normal lives.

Though city-wide curbs on movement were scrapped on June 1, the ordeal hasn’t ended altogether for Shanghai’s 25 million residents. China’s Covid-Zero policy still requires localized lockdowns of neighborhoods and apartment blocks whenever cases emerge, making that quick trip to a shop or a mall challenging. Then there’s the need for regular testing to use public transportation or to enter indoor spaces such as office buildings and restaurants, not to mention quarantine for as long as 14 days at a government facility in some instances.