Shanghai’s economy has been hit hard as a result of the zero-Covid policy. The financial hub officially ended its strict lockdown and opened the city on June 1. In addition, it also implemented 50 measures in an effort to recover the economy. 

Measures include various incentives for companies such as tax rebates, tax cuts, helping foreign-invested companies to resume their business operations, and others.

Along with those measures, a Shanghai governing body offers a unique approach to raising funds to fight the virus. 

A notice on June 7 from the Shanghai State-owned Assets Supervision and Administration Commission urged Chinese Communist Party (CCP) members and cadres to donate money to support the fight against the epidemic. The Commission is in charge of governing state-owned enterprises in Shanghai.

According to the notice, the personnel department of the Shanghai Municipal Party Committee explicitly suggested that CCP members of Party units in Shanghai’s state-owned enterprises should make donations. It encourages Party members to act first for others to follow and welcomes employees to participate in the plan actively.

In communist China, state-owned enterprises often have Party units with employees as CCP members. Companies’ key positions are often CCP members. They play essential roles in setting company strategies and other operations.

According to Bloomberg, Shanghai suffered a 48.2% drop in fiscal income year on year in April. Shenzhen followed behind as the technology hub revenue plunged 44.2%. Both cities are below the nation’s reduction of 41%.

Chinese-language media, Kanzhongguo, reported that the Shanghai Municipal Bureau of Finance on May 16 issued five refinancing bonds with a full scale of 65.48 billion yuan (9.76 billion dollars). The bonds will repay the existing debt.

After the lockdown, Shanghai officials are trying to revive confidence among multinational firms. The city reportedly has hosted over 20 meetings with foreign firms, as many warn that they are considering their investment plans.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.