BEIJING — Major Chinese cities Beijing and Shanghai began to relax Covid controls over the weekend as the local case count dropped.

On Sunday, 20 new Covid cases were reported across the nation, compared to 54 the day prior. For Sunday, eight Covid cases in Beijing were reported by the capital. Shanghai saw six.

Two months ago, Shanghai, China’s biggest city, required residents to leave their homes in order for virus testing. Beijing had tightened Covid controls around a month before, but some areas were still locked down.

Shanghai authorities announced that business could reopen on Sunday without needing to apply for approval. This was effective from Wednesday. A shopping area called Xintiandi — including a local Shake Shack — was among those set to resume some offline operationsAccording to state media, Wednesday

Additionally, the city announced several measures that would support small businesses and those with low layoffs. In order to encourage consumption, the city promised 10,000 yuan ($1,493) in support of anyone switching to battery-powered cars this year.

Shanghai reported that as of Sunday only 220,000 individuals were still under the strictest stay-home orders. More than 22 million people were now allowed to go out in the community.

In Beijing, major shopping centers, including a luxury mall that temporarily closed a month ago due to Covid,Their reopening was announced for Sunday. There are also hotels that could reopen in the countryside outskirts the capital. Happy Valley Beijing amusement park stated that they would be reopening on Tuesday.

While ride-hailing was resumed and all public transport returned to the main business district, more workers were permitted to return to work. If no Covid cases have been found within the last seven days, some libraries, museums, and gyms may reopen at half of their capacities.

However, restaurants in Beijing can still only operate on a takeout or delivery basis,There are no customers inside. The elementary and middle schools will remain closed.

Both Shanghai and Beijing now require valid virus tests to be able to access public places after the recent Covid epidemic. Shanghai has stated that the test results in Beijing are valid only for 48 hours. Shanghai however said that they will be valid beginning Wednesday for 72 hours.

Because implementation of Covid can differ at the local level, it’s not certain how soon most businesses will resume normal production. New confirmed Covid cases and contacts can lead to tightening.

Beijing Clients “question the magnitude of the growth rebound”Goldman Sachs analyst said that even with the relaxation of Covid controls on Sunday, they still believe in Covid controls.

Local clients are concerned about the scarring effects of anti-pandemic and slowdown in growth, as well as increased uncertainties surrounding economic and financial markets. policy outlook,Analysts predicted a rise in bankruptcies as well as higher unemployment rates.