Shanghai began a two-phase anti-Covid isolation and mass testing of the virus in late March that was supposed to end after just over a week. But authorities have not yet set a date when travel restrictions and stay-at-home orders will expire.
Shanghai is the country's largest and richest city and one of the largest metropolises in the world. With no sign that the Chinese government is prepared to ease the restrictions anytime soon, there is growing concern about the economic damage they are causing and the consequences that prolonged blockade will bring around the world.
Business and finance
Shanghai has the largest gross domestic product (GDP) of all Chinese cities - 4.32 trillion yuan ($ 679 billion), the third largest stock market globally in terms of the value of companies trading there, and the fifth largest the largest billionaires in the world.
According to city authorities, by the end of 2021, more than 800 multinational corporations had established regional or local headquarters in Shanghai. Among them are companies like Apple, Qualcomm, General Motors, Pepsico and Tyson Foods.
Trade and logistics
Shanghai accounts for 10.4% of China's trade with the rest of the world, according to official statistics for last year. The Port of Shanghai is the busiest port in the world for container traffic.
Shanghai is also a major aviation hub in Asia. The city's airports - Pudong International Airport and Hongqiao Airport - had 122 million passengers in 2019, making the city the fourth most populous center in the world after London, New York and Tokyo.
The blockade has exacerbated delays at the port and forced the suspension of many international flights, raising air fares and putting pressure on global supply chains.
Production and technology
Shanghai is a major manufacturing hub for industries, especially that of cars (Volswagen, General Motors, Tesla, etc.) and electronics. But Covid restrictions have forced many factories to suspend operations in Shanghai, saying they risk cutting off supplies to machines and electronics. Another industry includes pharmaceuticals. In October, AstraZeneca opened a global hub in Shanghai.
Source: CNN
