The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    PHOTOSDecisive moments of Team Korea at Asian Games

  • 3

    Will blue crabs from Italy arrive on Korean dining tables?

  • 5

    Seoul's financial assistance for egg freezing draws attention from single women

  • 7

    Korea wins gold, silver in men's golf

  • 9

    Over 30,000 protesters march for climate actions

  • 11

    KOICA pushes for $1.8 mil. project to support Nigeria's ICT education

  • 13

    Korea's drop in exports eases in Sept. on chip sales recovery

  • 15

    On the brink of a government shutdown, Senate tries to approve funding but it's almost too late

  • 17

    Heavy traffic jams mostly eased on 5th day of holiday

  • 19

    Koreans win gold, silver in men's roller skating

  • 2

    Korea blank China to reach men's football semifinals

  • 4

    INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'

  • 6

    Korea wins 1st gold in women's team badminton in nearly 30 yrs

  • 8

    INTERVIEWROK-US alliance is win-win partnership: KUSAF chief

  • 10

    Expressway congestion partially eases up as Koreans return home following Chuseok

  • 12

    Police launch belated probe into another teacher's suicide after parental harassment

  • 14

    Germany's government and Elon Musk spar on X over migrant rescue ships

  • 16

    M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub

  • 18

    Last-gasp deal averts US government shutdown

  • 20

    Kosovo demands Serbia withdraw troops from border

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
World
  • SCMP
  • Asia
Tue, October 3, 2023 | 07:23
SCMP
Zero-COVID pivot puts Shanghai's small businesses on emotional roller-coaster as curbs loosened, infections surge
Posted : 2022-12-12 16:29
Updated : 2022-12-12 16:36
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
People walk along Nanjing Pedestrian Road, a main shopping area in Shanghai in this May 2021 file photo. Reuters-SCMP
People walk along Nanjing Pedestrian Road, a main shopping area in Shanghai in this May 2021 file photo. Reuters-SCMP

People walk along Nanjing Pedestrian Road, a main shopping area in Shanghai in this May 2021 file photo. Reuters-SCMP
After struggling for nearly a year to stay afloat under the zero-COVID regime, small businesses in Shanghai are having mixed feelings about Beijing's policy pivot. Concerns about a resurgence in cases are tempering optimism that the good old days are back for good.

Some owners in China's main commercial hub believe they will soon be able to restore manufacturing and commercial activities to pre-lockdown levels in 2019, while others fear customers will shun public venues like eateries and malls in the coming months.

"It is a do-or-die moment for us," said Han Haifeng, chief executive of Shanghai New Era Printing, which currently produces 60 percent of its normal annual output of packaging materials. "We will have to cut jobs further, if the country cannot overcome the pandemic in the next one or two months."

For export-oriented companies like New Era Printing, a two-month citywide lockdown in April and May has delivered a big blow to its bottom line. A 100,000 yuan ($14,375) loss for the year may be palatable for now "but we cannot afford to suffer more [losses]," he said. "The 10-point guideline appears to be a double-edged sword to small businesses."

The State Council last week issued more guidelines to soften its anti-pandemic approach, scrapping daily mass testing, health codes and centralized quarantine requirements for most cases. Investors have helped lift the value of local stocks by $11 billion since an earlier directive on November 11 fueled so-called reopening bets.

That is seen as finally paving the way for the world's second-biggest economy to exit from its three-year-long zero-COVID policy that hobbled manufacturing and commercial activities.

The downside to reopening is a flare-up in new infections. New cases jumped as soon as measures were eased, believed to be driven by new subvariants of the highly infectious but less deadly Omicron strain. The country reported more than 40,000 infections on November 28, a record since the Wuhan outbreak in early 2020.

"If the virus were to spread fast, no customers would patronize my restaurant," said Wang Xuliang, who operates the Suiyi eatery in Pudong. "I would have to suffer a monthly loss of 100,000 yuan if the restaurant could not generate sales."

Retail businesses in Shanghai, a city of 26 million residents, took a heavy toll from the lockdown in April and May. Retail sales plunged by 48.3 percent year on year in April, followed by a 36.5 percent slump in May, government data showed.

The prospects of an end to zero-COVID policy have spurred economists to raise their forecasts for corporate earnings in the coming months. Assuming China further loosens its policy after the National People's Congress in March, companies in the CSI 300 Index are expected to post a 15 percent growth in 2023 versus 4 percent in 2022, UBS Securities said in a December 5 report.

People walk along Nanjing Pedestrian Road, a main shopping area in Shanghai in this May 2021 file photo. Reuters-SCMP
Residents line up outside the fever clinic at a hospital in Beijing after the easing of COVID-19 restrictions. AP-SCMP

Small-business owners would disagree, said Chen Xiao, chief executive of Shanghai Yacheng Culture, a firm that deals with marketing and branding for retail companies.

"Surging infections in the coming two or three months will be detrimental to thousands of small businesses since they may run out of cash and confidence," Chen said. "Local authorities will need to roll out more tax incentives and subsidies to help them out."

During the past lockdowns, local authorities in Shanghai offered 140 billion yuan in tax sweeteners, cut a range of fees and exempted certain designated companies from paying rent on state-owned properties for three months. Banks were also asked to give low-interest bridging loans to struggling companies.

Quan Heng, the city's Communist Party secretary and a researcher of the Shanghai Academy of Social Sciences, said privately-owned small companies were the main victims of the stringent lockdowns. The city would make new policies to help them stay afloat and retain jobs.

"Small companies are in a difficult situation and it is necessary for the city government to offer them strong support," he said. (SCMP)


Read the full story at SCMP


 
miguel
wooribank
LG
Top 10 Stories
1[PHOTOS] Decisive moments of Team Korea at Asian Games PHOTOSDecisive moments of Team Korea at Asian Games
2Will blue crabs from Italy arrive on Korean dining tables? Will blue crabs from Italy arrive on Korean dining tables?
3[INTERVIEW] ROK-US alliance is win-win partnership: KUSAF chief INTERVIEWROK-US alliance is win-win partnership: KUSAF chief
4Over 30,000 protesters march for climate actions Over 30,000 protesters march for climate actions
5Korea makes last-ditch bid to host World Expo 2030 in Busan Korea makes last-ditch bid to host World Expo 2030 in Busan
6[INTERVIEW] It is premature to revise ROK-US mutual defense treaty: veterans' group head INTERVIEWIt is premature to revise ROK-US mutual defense treaty: veterans' group head
7LA-based photographer captures Koreatown unfazed by pandemic LA-based photographer captures Koreatown unfazed by pandemic
8Consumers to face higher prices for daily necessities after Chuseok Consumers to face higher prices for daily necessities after Chuseok
9Samsung chief visits Middle East to explore new businesses Samsung chief visits Middle East to explore new businesses
10Internet-only banks outperform legacy lenders in labor productivity Internet-only banks outperform legacy lenders in labor productivity
Top 5 Entertainment News
1[INTERVIEW] Ahn Hyo-seop wanted to share dedicated love with 'A Time Called You'INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'
2'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office 'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office
3M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub
4[INTERVIEW] 'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director INTERVIEW'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director
5Trailblazing nonagenarian artist honored for redefining Korean fiber art Trailblazing nonagenarian artist honored for redefining Korean fiber art
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group