There’s no end in sight to the lockdown measures restricting 25 million people and the world’s largest port in Shanghai.
Daily infections rose to 23,624 nationally in China with the vast majority in Shanghai. A new round of mass testing was ordered and lockdowns are no expected to last through the month.
Difficulties in getting food are beginning to cause unrest, with people complaining of having to survive on one meal a day. The Chinese diet consists largely of fresh food and takeout is very popular in Shanghai. Both are unavailable or restrained.
A new plan will put districts into three types of zones: lockdown, control and precaution; with various levels of severity.
In an ominous sign, Guangzhou ordered all 18 million residents to get tested after finding two cases while Shenzhen put a community under lockdown after finding a case.
Eyes are now turning to economic support measures as China risks missing its 2022 growth targets.
“China’s economy needs further policy support to achieve the targeted 5.5 percent expansion this year”, according to a poll of Chinese research analysts that was published in the state-sponsored press.
The PBOC meeting on Friday is likely to include easing measures. The survey also recommend supply-side and tax policies to stabilize employment and subsidize operations for SMEs as well as for larger businesses. They also recommend policies that support real estate and infrastructure spending, with the latter a particular potential tailwind for commodity markets.