Millions of people in Beijing are going through mass testing this week after an outbreak of COVID cases. Nearly 900 miles away, there’s also COVID testing in Shanghai — which has entered the fourth week of a lingering lockdown.
That’s taking a tremendous toll on residents, but it’s also hitting China’s markets and economy.
Starting Tuesday, every resident of Shanghai will be tested for COVID — again.
Deaths have spiked and cases with symptoms shot up by more than 75% in 24 hours.
The damage to health and daily life in Shanghai is also hitting financial markets.
On Monday, the Shanghai Composite Index slumped more than 5% — its worst one-day sell-off in more than two years.
Down about 20% this calendar year, the Shanghai Composite is the worst-performing major index in Asia.
Despite Shanghai’s lockdown, some factories have stayed open by maintaining “COVID bubbles” where workers eat, sleep and stay at a plant, rather than going home.
Other facilities have closed.
Last week, Chinese officials said they would help more than 600 companies resume operations.
One of them is Tesla — which re-started some production last week in a phased re-opening.
The Wall Street Journal reports the city government requires each worker to be tested for COVID twice a day.
And it’s not just the factories. Port facilities and truck traffic have been disrupted.
The European Union Chamber of Commerce says multinational companies in Shanghai are dealing with a “logistical nightmare” and the chamber expects it to last at least through mid-May.
