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China Lifts Lockdowns in Low-Risk COVID Areas... Begins Economic Stimulus Measures

Encouraging Resumption of Business Activities in Low-Risk Areas... Roadblocks Also Lifted
High-Risk Areas Still Strictly Controlled

China Lifts Lockdowns in Low-Risk COVID Areas... Begins Economic Stimulus Measures [Image source=Reuters Yonhap News]

[Asia Economy Reporter Minwoo Lee] China has decided to lift road traffic restrictions and normalize economic activities in areas where the risk of the novel coronavirus infection (COVID-19) has decreased.


Ou Xiaoli, Director of the Social Affairs Department at the National Development and Reform Commission, held a COVID-19 related press conference on the 25th and emphasized, "Low-risk areas should fully restore production and living order and cancel road traffic restrictions." Accordingly, local governments are expected to lift traffic blockades and support the resumption of business activities. This is interpreted as a phased measure to stimulate the economy as the COVID-19 risk enters a stable phase.


Director Ou stated that low-risk areas should help companies resolve issues such as labor shortages, financing, and raw material procurement. He also warned not to slow down the pace of resumption by imposing conditions or using approvals as an excuse. However, he added that high-risk areas must still be strictly controlled.


China has decided to manage the risk levels of regions, excluding Hubei Province, the epicenter of COVID-19, and the capital Beijing, by categorizing them into low, medium, and high risk. President Xi Jinping also stated at a meeting on the 22nd that production activities should be resumed step-by-step starting from low-risk areas.


Meanwhile, Director Ou mentioned that the daily mask production nationwide has increased threefold compared to right after the Chinese New Year holiday, reaching 54 million units.


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