Including manufacturers, Tesla started preparing to reopen their Shanghai factories on Monday, as the city ramps up efforts to exit a COVID-19 lockdown that has forced most businesses.
Two sources told Reuters that Tesla has recalled workers to its factory to prepare to restart. He said the US automaker initially intended to resume a production shift on Monday, but is now looking to do so on Tuesday. One of the sources said that one of the reasons was that a supplier was facing logistics issues.
SAIC MOTOR the Chinese partner of Volkswagen And General Motorssaid it would begin stress-testing its production resumption plan on Monday.
Meanwhile, Shanghai aims to contain the spread of COVID-19 outside quarantine zones by Wednesday, Reuters said on Sunday, citing sources, which would allow further easing of its lockdown. It is testing and shifting positive cases and their close contacts to isolation centers to meet that goal.
A lockdown in China’s most populous city has halted ground business, while sweeping restrictions are straining global supply chains and taking a growing toll on the world’s second-largest economy during a crucial year for the president. Xi Jinpingwho is hoping to secure a third leadership term in the autumn.
Lockdown-weary residents are grappling with hardships, including lost income along with food for many, isolated families and poor conditions at quarantine centres.
While Shanghai previously said companies could stay open if they managed to isolate their employees on-site through “closed loop management,” that has proved difficult for many, including Tesla and Volkswagen, which have closed its plants in April.
And even if workers were prepared to stay on site, procuring supplies has been made difficult after cities near Shanghai have implemented their own COVID-19 restrictions and truck transport has been severely affected. has been interrupted.
China’s industry regulator on Friday published a “whitelist” of 666 firms, mainly in Shanghai’s semiconductor, auto and medical supplies sectors, that it prioritized for ongoing operations.
An employee at a company on the list, who did not wish to be identified as she was not authorized to speak publicly, was told by her employer that she could apply for a permit to drive to work, or Can be picked up from home.
Other companies preparing to reopen include biotechnology firm Shanghai Ras Blood Products Co Ltd and a unit of state-backed Shanghai Pharmaceuticals. Shanghai Securities News reported on Monday.
According to guidance released on Saturday, companies applying to resume work should stock up on medical supplies and establish closed loops for workers who must stay at work or travel between work and home until should be limited.
Shanghai is under pressure to work on China’s COVID-19 eradication strategy, which largely kept the coronavirus at bay for the past two years, but is being challenged by the highly infectious Omicron variant.
On Monday, Wu Qianyu, an official with the Shanghai Municipal Health Commission, said the city would launch a new round of daily PCR and antigen tests for residents in “sealed” and “controlled” areas from Monday to Thursday.
“We hope that most of our citizens will continue to cooperate as usual,” she told Monday’s news conference.
“So we can stop the spread of the virus, achieve the goal of zero-COVID at the community level as soon as possible, and allow normal production and life to resume.”
State media said Shanghai has conducted more than 200 million PCR tests since March 10, when the city’s cases began to rise.
Of the 21,395 new local infections reported in Shanghai on Sunday, 561 were found outside quarantine zones, down from 722 on Saturday, a third consecutive decline.
Shanghai also reported that three people infected with COVID-19 died on Sunday, the first time it has reported deaths among coronavirus patients during the current outbreak.
The patients, two women and one male aged 89 to 91, were suffering from underlying health conditions such as coronary heart disease, diabetes and high blood pressure, the city said.