Last week, China announced a nationwide relaxation of its COVID restrictions. As a result, many small businesses in China’s central Wuhan now face fresh worries about their uncertain future. Business remains bleak in this city in the central province of Hubei.
Many people dream about brighter prospects after the COVID curbs eased. Yet, those prospects are now gone as residents remain wary of a spike in COVID cases.
According to Reuters, Zhu Chongping, 60, is the restaurant’s owner that serves regional cuisine in the city. He said about the current business situation, “I’m losing money every day, a thousand yuan a day.”
As infections rise, Beijing’s decision to ease its COVID restrictions will likely slow growth over the coming months.
Zhu added that his landlord is not cutting his rent this year.
This year, there are also fewer signs of consumer vouchers and rent subsidies to help businesses.
“This street is considered a top location in Wuhan,” Zhu added. “Now there is no one about. You can imagine that other locations are even worse.”
Only a pharmacy has many people queuing to stock up on medicines to treat the symptoms of COVID.
The 48-year-old owner of a bag store on nearby Hanzheng Street is also in the same situation, even though the street is known as home to one of China’s biggest wholesale clothing markets.
According to surveys, factory activity shrank in November because of extensive COVID restrictions. As a result, exports and imports plunged at their steepest pace in at least two and a half years.
According to Bloomberg, President of Goldman Sachs John Waldron spoke via video conference at Shanghai’s Bund summit that China’s road to reopening could be “bumpy” after the country shows signs of easing lockdowns.
He added that China’s difficulties in reopening will “obviously have some negative implications for growth.”