China’s Shenzhen eases restrictions as Covid outbreak threatens to derail economy

The southern tech city of Shenzhen has allowed factories and public transport to function after it decided to partially ease lockdown restrictions in the wake of Chinese President Xi Jinping stressingthe need to "minimise the impact" of the COVID-19 on the nation's economy.

In a statement published late Thursday, the city health commission said it has allowed movement in four districts and a special economic zone, saying that these areas have "achieved dynamic zero-Covid in the community."

While the rest of the city will still be subjected to Covid restrictions, the government said.

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The move comes a week after the city of 17.5 million people was suddenly locked down to contain the spread of the highly infectious Omicron variant.

Millions have remained under lockdown across the country, as the country battles its worst outbreak since the Wuhan crisis in 2020.

On Friday, China reported 4,365 new infections nationwide, according to National Health Commission data.

Officials are encouraging the use of rapid antigen tests, made available to the public for the first time last week, and urging citizens to take more responsibility for their own health.

Shenzhen-based factories of iPhone manufacturer Foxconn temporarily shut earlier this week due to virus lockdowns, which triggered a major selloff of Chinese tech stocks listed in Hong Kong.

Battered by the Covid-induced economic crisis, Xi pointed out the spiralling economic costs of China's zero-Covid strategy during a Politburo meeting Thursday where he vowed to "stick to" the approach, saying "persistence is victory", AFP reported.

Across the border from Shenzhen, Hong Kong is recording some of the highest death rates in the world from Omicron, especially among its unvaccinated elderly people.

(With inputs from agencies)