People’s Republic of China (PRC) suffers from the extraordinary rise in its COVID-19 cases. China’s major cities are currently in full or partial lockdowns; this includes the commercial hub of Shanghai, and the political capital, Beijing. It incites many economists and analysts to cut growth forecasts for the world’s second-largest economy and largest trading nation in the world.

Since the start of the year, China’s average daily case count has surged to more than 20,000. As a result, at least 27 cities across the country are under full or partial lockdown, impacting approximately 180 million people.

The strictest measures are in effect in Shanghai, the country’s financial powerhouse, where a significant number of its 25 million residents have been unable to leave their residences for more than a month.

Timeline:

Starting in March of this year, cases in China began spiraling out of control. During the early stages of the renewed outbreak, Northeastern Jilin province was hit hard. The provincial capital, Changchun, an industrial hub, was put under strict city-wide lockdown on the 11th of March, and on the 21st of March, its nearby city of Jilin followed.

Fortunately, this Thursday, the 28th of April, the Government announced that Changchun and Jilin City, home to more than 13.5 million residents, will ease their lockdown measures.

On Thursday, the capital, Beijing closed schools in many of its most populous districts. Some of the large-scale hospitals and medical facilities followed with the announced closing of their facilities. A significant number of entertainment venues have not been spared and were ordered to close. In addition, a mass testing campaign has covered nearly 20 million residents — about 90% of the city’s population. Following this, another round of city-wide testing is expected to be underway from the 27th of April to the 30.

Currently, full or district-wide lockdowns are in effect in more than twenty-five cities, including Hangzhou, home to 12.2 million people; Suzhou, home to 12.7 million people; and Harbin, home to 9.5 million people. They span 14 provinces, from far-flung northeastern Heilongjiang province to southern Guangxi and the mountainous western Qinghai province.

Economic Cost:

China’s economic activity contracted sharply in April as the lockdown of Shanghai and other areas around the country commenced to contain a widespread COVID-19 outbreak. It closed factories, stopped key constructions, and slowed people from personal consumption. Further escalating concerns about disruption to global supply chains.

China’s National Bureau of Statistics released official economic data. According to it, the factory activity fell to its lowest level in over two years. The construction and services sector plummeted as well.

“The deterioration in multiple activities was due to sharper declines in both production and demand,” the statistics bureau said. In addition, activities in the service industry fell sharply “due to the severe impact from the outbreaks,” Zhao Qinghe, an independent statistician, added.

Overall, 19 of the 21 surveyed major sectors contracted their business activities; these include air transport, accommodation, and catering. In spite of all of these, the Chinese Government is still optimistic about this year’s economic outlook as they promised a quick economic recovery after the pandemic has been controlled.