Scene from Shanghai [Dong Tianye/Shanghai Observer]
National Politics
Facing the worst outbreak since the pandemic, Shanghai enters a staggered lockdown and tests dynamic zero-Covid approaches
To minimize economic disruptions, city implements a two-stage lockdown, alternating and closing one half of city for mass testing, and admits to being ill-prepared for contagious Omicron variant; 30,000 mostly asymptomatic cases were registered in March, up to 5,656/day
Shanghai government offers US$22 billion financial package to help businesses affected by the Covid-19 outbreak in recent weeks
Measures include tax cuts, rent exemptions, and low-interest bank loans; Tianjin and Harbin implemented similar policies and Shenzhen issued consumption vouchers (US$78.5 million) after weeklong suspension of non-essential services
People’s Life and Culture
Over 50,000 volunteers take to the frontlines and thousands of delivery workers help Shanghai battle the Covid-19 outbreak
Joining over 2,000 government pandemic response initiatives, residents assist with temperature checks, deliveries, and testing, with 30 million nucleic acid tests conducted from March 16 to 20; online grocers like Dingdong Maicai doubled orders but face logistical challenges
Tier 2 cities attract more migrants as Tier 1 cities, such as Shanghai, Beijing, and Guangzhou, face layoffs, wage cuts, inflation, and slower growth
By 2021, Tier 2 cities saw highest growth in permanent population, including Chengdu (+245,000, to 21.19 million) and Hangzhou (+239,000; 12.2 million); population redistribution and flexibilization of residency requirements will benefit economic development
Geopolitics
Foreign Ministers Wang Yi and Sergey Lavrov met in China, discussing Ukraine crisis and criticizing Western sanctions against Russia
Wang and Lavrov lead a meeting on Afghanistan’s economic crisis with neighboring countries; China also met with Global South countries, which oppose sanctions against Russia (India, Pakistan, Egypt, Algeria, Zambia), aiming to mediate Ukrainian conflict and circumvent NATO’s polarization attempts
Huawei announces 75.9% increase in net profits last year (US $17.9 billion), despite US sanctions
Sale of mobile subsidiary Honor and new services (servers, 5G applications) ensured profitability, but crisis in the electronics business, especially cell phones, caused drop in revenue (-28.5% from 2020 to US $99.9 billion)
Economy
Sinopec’s net profits jumped 115% year-on-year to US$11.3 billion (2021), the highest since 2012
Sinopec plans to increase investment (+18% to US$31.10 billion) this year, to produce 281.2 million barrels of crude oil and 355.9 billion mᶟ of natural gas; projects and operations in Russia are proceeding as planned, despite Western sanctions
Shenzhen launches measures to boost domestic consumption amid Covid-19 surge and global macroeconomic pressure, aligning with central government priority
Measures include incentives to buy new energy vehicles, digitalization of consumption, creating an urban nighttime consumption scene, and improving consumer rights, as the Chinese city with the highest GDP per capita (US$27,000; 2021) aims to become a regional shopping hub
Agriculture and Environment
Rural poverty alleviation in China, with technology applications in agriculture, provides inspiration for Kenya and other developing African countries
China-African Union (AU) partnership aims to achieve the average annual growth of over 7% set by the AU’s Agenda 2063; by 2021, China announced nine programs to strengthen cooperation in areas such as poverty reduction, agricultural development, and digital innovation
China’s annual fish production is expected to increase from 65.47 million (2020) to 69 million tons, according to the 14th Five-Year Plan for Fisheries Development
Plan limits wild catches and sees aquaculture growth, while distant water-fishing will remain at the 2.3 million tons of the previous plan, and the country promises to improve monitoring and compliance with international fishing treaties
Volunteers delivering necessities for residents in Fengxian District in Shanghai on 28 March 2022 [Xinhua]
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