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With the official announcement of Shanghai’s exit from the bloc, China is providing a major economic stimulus that is likely to affect not only domestic but also global demand.

Chinese officials have confirmed that Shanghai, with a population of more than 25 million, will exit the bloc starting June 1, 2022. From June 1 to mid-to-late June, Shanghai will restore the normal order of production and life throughout the city with the usual disease prevention and control measures, strictly preventing the resurgence of the epidemic.

The economy is expected to improve in May, thanks to accelerated labor and production recovery in Shanghai and Jilin and the implementation of pro-growth measures. This, combined with current growth policies, is expected to give China a positive boost.

Due to the tight two-month freeze, the Chinese economy is likely to face significantly higher demand from abroad, in addition to all existing and deferred investment volumes.

Demand for ferrous and nonferrous raw materials, such as steel, aluminum, copper, and stainless steel, is also likely to increase in other parts of the country due to the easing of restrictions on the pandemic.