China’s economy improves as COVID-19 restrictions ease, Beijing says – Fox Business

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A Chinese Cabinet official said Monday that the country's stagnant economy is recovering as the country eases its coronavirus restrictions and as businesses in Shanghai, China's richest and most populous city, are allowed to resume operations.

Of the 9,000 biggest industrial enterprises in Shanghai that were forced to close starting in late March, about half have resumed work, according to Fu Linghui, director of statistics for the National Bureau of Statistics.

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In this photo released by Xinhua News Agency, a villager carrying baggage returns home after being quarantined due to local COVID-19 cases found in Lianqin Village of Beicai Town in Pudong New Area, Shanghai on Tuesday, April 26, 2022. (Jin Liwang/Xinhua via AP / AP Newsroom)

The government is looking to reverse an economic slowdown without turning its back on the "zero-COVID" strategy that has shut down parts of several major cities and requires every person who becomes infected with the coronavirus to quarantine.

"We believe the operation of the economy is gradually improving in May as logistics is unblocked to ensure smooth access and support is increased for the real economy," Fu said at a news conference.

Communist Party leaders said following a meeting earlier this month that COVID-19 mitigation measures will take precedence over the economy.

Efforts to control the virus have shut down businesses or suspended access to industrial centers in several cities across the country.

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Police and security members in protective suits stand outside cordoned off food stores following the coronavirus disease (COVID-19) outbreak in Shanghai, China March 29, 2022. (REUTERS/Aly Song / Reuters Photos)

Chinese leaders have committed to providing entrepreneurswith tax refunds, low-cost loans and free rent. Repeated shutdowns, however, have disrupted manufacturing, retail and exports.

Retail sales dipped more than 11% in April compared to that time last year after COVID-19 restrictions closed stores, restaurants and other consumer businesses in Chinese cities, according to official data shown Monday.

Manufacturing also saw a nearly 3% decline following factory closures. Factories that kept business open with employees living at their place of work had to cut output because of the disruption in supplies of components, the data revealed.

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A worker wearing a protective suit sprays disinfectant in a neighborhood in Qingdao in eastern China's Shandong Province. (Chinatopix via AP)

Fu said the Chinese government has not yet gathered data for May, but that the economy appears to be improving based on "physical quantity indicators."

"I believe the second quarter will maintain good growth momentum," he said.

The government announced that Shanghai will gradually reopen shopping malls, vegetable markets, hair salons and other businesses beginning Monday.

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The Associated Press contributed to this report.

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China's economy improves as COVID-19 restrictions ease, Beijing says - Fox Business