Like many people in Shanghai, Joyce has spent weeks at home since the last COVID-19 lockdown was imposed on March 28. The software industry executive, who asked to be identified by her first name only to avoid the attention of authorities, says she has been suffering from food shortages and the compound where she lives has resorted to “group buying” where different people are responsible for sourcing as much as possible of a given product for the community.
“A lot of people struggle with being cooped up at home because they literally have no income,” she says. Group shopping “is three to four or five times more expensive than normal days, and Shanghai isn’t cheap.”
Faced with this dire situation, the central government in Beijing has made it a priority to restart Shanghai’s industrial sector. Liu Erthe chinese vice premier announced this week that the government would aim to stabilize the country’s supply chain by helping 666 companies in COVID-ravaged Shanghai to resume operations. And that’s while the city continues to battle the worst in China COVID Outbreak since the beginning of the pandemic can prove to be an enormous challenge – and failing to contain the disruption that the global supply chain could feel in the coming weeks or months.
The government announced the “white list” of Shanghai businesses it would help reopen on April 15, of the roughly 50,000 operating in the region. The list includes domestic and foreign companies that provide key inputs to the supply chain, such as: B. Manufacturers of semiconductor components, automotive parts and medical supplies. Tesla’s Shanghai factory reportedly reopened already, since workers are locked in a closed loop, but with many component shipments still closed, it’s unclear how much of the production line is operational.
The government may feel that it has no choice but to boost industrial activity, although the situation in Shanghai is not yet fully under control. China’s National Bureau of Statistics released on Monday economic data shows that although the economy grew 4.8 percent in the first quarter of 2022 compared to the same period in 2021, economic activity slowed in March in Shanghai and other lockdown-hit cities.
“People here have mixed feelings” about the reopenings because they see them in part as a public relations exercise, Joyce says. “Most companies ask people to live in the factory, but how are you going to do that? People may not be allowed to go home.”
Some factories have been able to continue operations while minimizing the risk of COVID outbreaks by working with workers who are locked in a “closed loop,” meaning they stay in a factory, eat there and, in some cases, reportedly Had to sleep on the floor for days or even weeks at a time.
Many workers would need a permit to leave the premises where they live and then risk not being allowed to return. Some factory managers are unsure if the workers will appear. One at an electronics factory in Shanghai, who asked not to be named because of the risk of angering authorities, says his factory has successfully used the closed-loop approach. But he worries it may be difficult to find enough workers for each new shift.
This article was previously published on Source link