Under several waves of the omicron pandemic this year, Chinese authorities maintain a strict “clearing” policy. Shanghai, Chengdu, and other cities with populations of 10 million were locked down. This made people miserable, and the retail, service, and tourism industries suffered heavy losses. Shanghai is where the economic downturn is most clearly seen.
According to Chinese media, one-third of the stores in Zhengda Plaza are closed. Zhengda Plaza is the most strategic shopping mall in Shanghai. However, the strict disease control policy has caused many stores to stagnate.
For example, on the third floor of the mall, there are 53 storefronts, 15 are closed.
Recently, the China Real Estate Information Group investigated 20 major shopping malls in China. The report stated that 34% of the shops in Shanghai Super Plaza are closed.
Many people notice that even on Friday’s off-duty hours, there is no bustling crowd. Instead they are lining up at the nucleic acid testing booth.
On September 16, the pandemic prevention policy in Shanghai was relaxed. However, the flow of people is still sparse, and shopping remains sluggish. Chinese media claims that pandemic prevention and control have eliminated all certainties, and outbreaks still occur.According to a Bloomberg survey, China’s economic slowdown will be more severe than in 2020. This year’s economic growth will be the second weakest in 40 years. The repeated high-profile lockdowns in major cities such as Shenzhen may remind households expect more disruption to their lives.