SHANGHAI: Manufacturers including Tesla began preparing to reopen their Shanghai factories on Monday as the city accelerated its efforts to emerge from a COVID-19 lockdown that has forced most businesses in China’s economic hub to close for almost three weeks.
Tesla has recalled workers to its factory to prepare for the restart, two sources told Reuters.
They added that while the US automaker had originally planned to resume a production shift on Monday, it was now planning to do so on Tuesday.
One of the sources said one of the reasons was that a supplier was having logistics issues.
Tesla did not immediately respond to a request for comment.
SAIC Motor, the Chinese partner of Volkswagen and General Motors, said it would start testing its plans to resume production on Monday.
The foreclosure has brought business to a halt in China’s most populous city, while wider restrictions are shaking up global supply chains and increasingly straining the world’s second-largest economy in a key year for President Xi Jinping, who is expected to get a third term as director in the fall.
China’s supply chains must be stabilized, says vice premier
China’s supply chains need to be stabilized amid COVID-19 outbreaks, with local governments helping key companies get back to work, the official Xinhua News Agency quoted Vice Premier Liu He as saying.
Growing outbreaks of COVID-19 are roaring China’s supply chains, clogging highways and ports, stranding workers and shuttering countless factories.
The disruptions are already rippling through global supply chains.
Monday’s data showed a significant slowdown in economic activity in March, and analysts say April will likely be worse as the severe lockdowns drag on.
Authorities should ensure that drivers’ traffic permits are recognized nationwide and that transport should not be restricted on the grounds of waiting for drivers’ COVID-19 test results, Xinhua said on Monday.
China’s industry regulator intervened on Friday, issuing a “whitelist” of 666 companies mostly in Shanghai’s semiconductor, automotive and medical supply sectors that it prioritized for operations in Classes.
An employee of a company on the list, who did not wish to be identified because she is not authorized to speak publicly, was told by her employer that she could apply for a permit to drive to work or be picked up at home.
Companies requesting to return to work must stock up on medical supplies and also establish closed loops for workers who must live in the workplace or be limited to travel between work and home, according to guidelines released Saturday.
Zero Covid objective
Shanghai is under pressure to implement China’s COVID-19 elimination strategy, which has largely kept the coronavirus at bay over the past two years but is increasingly challenged by the highly infectious variant of the virus. ‘omicron.
Shanghai has conducted more than 200 million PCR tests since March 10, when the city’s cases began to rise, state media said.
Shanghai also reported that three people infected with COVID-19 died on Sunday, the first time during the current outbreak that it has reported deaths among coronavirus patients.
The patients, two women and a man between the ages of 89 and 91, had underlying health conditions such as coronary heart disease, diabetes and hypertension, the city said.