No relaxation of Covid-19 measures for China, says Xi

BEIJING • China must not relax Covid-19 control and prevention measures, President Xi Jinping said during a visit to the southern island of Hainan yesterday, state radio reported.

His comments came as China's commercial capital, Shanghai, reported more than 25,000 new cases. It is under huge pressure to contain China's biggest Covid-19 outbreak since the coronavirus was first reported in the Chinese city of Wuhan in late 2019.

Mr Xi said China must continue with its strict "dynamic Covid-19 clearance" policy, while striving to minimise the impact of pandemic measures on the economy and society, state radio said. Mr Xi was visiting an economic development zone in the city of Danzhou in Hainan.

Shanghai reported 25,141 new asymptomatic coronavirus cases for Tuesday, up from 22,348 a day earlier, while symptomatic cases jumped to 1,189 from 994.

The city's police department warned yesterday that anyone who violates Covid-19 lockdown rules will be dealt with strictly. It spelled out the restrictions that most of the 25 million residents are facing and called on them to "fight the epidemic with one heart... and work together for an early victory".

"Those who violate the provisions of this notice will be dealt with in strict accordance with the law by public security organs... If it constitutes a crime, they will be investigated according to law," the department said in a statement.

Shanghai police also warned increasingly frustrated residents, millions of whom are confined to their homes and struggling to get daily supplies, not to spread false information or forge road passes or other clearance certificates.

Cars are banned from the streets except for those involved in pandemic prevention or transporting people in need of emergency medical treatment.

Residents battling to secure delivery slots for their food are facing surging prices, which the government is keen to keep a lid on.

Mr Peng Wenhao, an official with Shanghai's market supervision bureau, said the authorities issued 38,000 letters of warning against price gouging and were investigating complaints of irregular pricing on social media.

Shanghai's pandemic measures, which reflect China's strict "zero-Covid-19" approach, have reverberated through the global economy, with analysts warning that they are not only hurting tourism and hospitality, but also having an impact on supply chains across sectors.

Barclays Bank economist Jian Chang said: "The widespread lockdown and tighter zero-Covid-19 restrictions in several cities around Shanghai have caused significant supply disruptions, with transport and logistics under severe pressure."

More than 30 Taiwanese companies, many making electronics parts, said yesterday that Covid-19 control measures in eastern China had led them to suspend production until at least next week.

Besides Shanghai, which has been under a tight lockdown since late last month, neighbouring Kunshan, a county-level city in southeastern Jiangsu province - has also tightened curbs.

Global companies, including makers of mobile phones and chips, are highly dependent on China and South-east Asia for production, and have been diversifying their supply chains after the pandemic caused havoc.

Among the Taiwanese firms notifying the stock exchange of a disruption in operations was Quanta Computer, an assembler of Apple's MacBook. It said a Shanghai unit had suspended operations, with resumption depending on government approval. Quanta also said it was in close touch with suppliers and assessing the financial impact.

Asia Electronic Material, which makes parts for laptops, mobile phones and digital cameras, said its Kunshan plant would be closed until next Tuesday. EFUN Technology, which makes parts for liquid crystal displays, said its factory in nearby Suzhou would also be closed until next Tuesday.

REUTERS, XINHUA, BLOOMBERG