China is Sending Military Personnel to Shanghai as COVID-19 Lockdown Enters Second Week

China is sending 10,000 medical personnel, including 2,000 from the army and navy, to Shanghai to deal with a COVID-19 outbreak that has locked down significant portions of the city for two weeks.

China’s Zero-COVID policy has been a source of pride for the nation, as countries around the world have failed to contain the virus as well as China. But it is unclear how long Beijing will stick to the policy considering it announced a goal of a 5% increase in gross domestic product (GDP) this year.

If the lockdown is not lifted soon, Shanghai could lose 3.7% of its expected GDP, according to a Chinese based economist who spoke to the BBC.

The government’s Zero-COVID policy is being tested as it struggles to stop the spread of the highly contagious Omicron BA.2 variant. Thirteen thousand cases have been identified so far, with 12,000 being asymptomatic or reporting mild symptoms. Authorities are testing as many of the 26 million residents of Shanghai as possible.

In an attempt to counteract the economic losses, some factories and financial institutions are staying open in a “closed-loop” system. Not unlike the Beijing Olympics, it is essentially a bubble, with employees working, sleeping and living in factories and offices. The strategy cannot work forever, supplies will need to be replenished, requiring that the bubble be penetrated.

Shanghai is China’s financial capital and is also a major manufacturing hub for cars and electronics, in addition to being the world’s busiest shipping port. If China is unable to get the virus under control, it could have a big impact economically. Already, authorities had to delay the re-opening of eastern Shanghai, which was planned for last Friday.

General Motors Co. and Volkswagen AG factories remain open for now using the closed-loop system, while most shops and local businesses have shut down.

Warehouses are also being filled with vegetables, and an online grocery store says it is doubling its staff in one warehouse to deal with increased demand due to the lockdown.

Besides the economic factors, the toll of China’s strict lockdown measures are being felt by the city’s residents. Expo centers and other large facilities are being converted into isolation centers for patients who test positive, but remain asymptomatic or report mild symptoms.

Residents, including children, are required to stay in isolation facilities after testing positive, but their parents are not permitted to join them unless they also test positive. This separation has caused concern among parents in the city.

To date, China has reported 259,389 COVID cases and 4,638 deaths.