Shanghai’s small businesses brace for more pain after mainland economic hub reports new Covid-19 cases
- Shanghai’s gross domestic product fell 0.3 per cent over the first three quarters of this year
- City’s economy is more dependent on services and consumption, so more vulnerable if the coronavirus comes back, East China University of Science and Technology professor says
Wang Xiaoliang crossed his fingers on hearing that Shanghai, mainland China’s financial capital, had reported a Covid-19 case after a five-month gap.
“I don’t fear the disease because I believe the government can stop it from spreading,” said Wang, who owns a Chinese restaurant in Pudong. “I just hope that no one near our restaurant is infected.”
The case, reported on November 9, was a rude reminder for small business owners in the city of the economic devastation the pandemic has caused. With no patrons in February and March, Yimianqian – Wang’s restaurant – incurred heavy losses.
“We cannot afford another lockdown,” he said. “I will probably have to close the restaurant down, should we face another two months of weak business.”
The Shanghai government’s handling of the outbreak and its successful containment measures won residents’ approval earlier this year. But business activity and economic output have failed to keep pace with the rest of the country.
Where China has proved to be the lone bright spot in the global economy, with its economy growing 0.7 per cent over the first three quarters this year, Shanghai’s is among five regional economies in China that have reported negative growth. The city’s gross domestic product fell 0.3 per cent over the same period.