Shanghai finds cases after 5 days of 'zero Covid' but end of lockdown on track

A medical worker collects a swab sample from a woman at a nucleic acid testing site on a street during lockdown, amid the coronavirus disease pandemic, in Shanghai, China, on May 20, 2022.SHANGHAI/BEIJING - Shanghai announced its first new Covid-19 cases outside quarantined areas in five days on Friday , triggering stricter curbs and mass testing in one district but plans to end a prolonged city-wide lockdown on June 1 appeared on track.

Other officials said steps in the gradual re-opening of Shanghai were going ahead, with suburban parks due to open from Sunday. Other parks could open from June if they met certain conditions but leisure facilities in parks would remain closed.Shanghai has been allowing more people to leave their homes in recent days, with many residential compounds issuing a limited number of passes for brief walks or trips to the supermarket.

China's capital has struggled to end an outbreak since late April despite significant curbs on movement, with many residents working from home and a range of shops and venues closed. The European Chamber of Commerce in China warned this week that many companies and individuals were "seriously considering their China presence", even though this month, the Covid situation in Shanghai and more broadly in China has been improving.

"This new normal should allow manufacturing supply chains to gradually resume normal operation, but will continue to weigh on consumption, the services sector and small business," Gavekal analysts wrote in a note.There have been signs of the economy responding positively to the looser controls in May after the April contraction.

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