Shanghai’s surge in exports, foreign investment may be short-lived as overseas economies still grapple with coronavirus, official warns

Shanghai, mainland China’s commercial and financial capital, is bracing for turbulent times as the Covid-19 pandemic still wreaking havoc in other countries could derail the city’s rising exports and foreign direct investment (FDI).

An economic recovery in the mainland’s gateway city has yet to find solid ground as economic uncertainties abound around the world, according to Tang Huihao, deputy head of Shanghai’s statistics bureau.

“The pandemic is still developing around the globe,” said Tang at a press conference on Wednesday. “The outside economic world is not stable yet and uncertain factors abound. The fundamentals driving the city’s economic recovery are not strong.”

Shanghai’s GDP growth has been lagging behind the national figure since 2008 as the mainland’s most developed metropolis refrained from spending heavily on infrastructure, focusing instead on finance and commerce to reinforce its bid to become an elite world city on par with New York and London.