China rolls out plans for businesses to resume work in locked-down Shanghai

China rolls out plans for businesses to resume work in locked-down Shanghai
FILE PHOTO: Residents line up for nucleic acid tests during a lockdown, amid the coronavirus disease (COVID-19) pandemic, in Shanghai, China, April 16, 2022. REUTERS/Aly Song/File Photo

Shanghai reported close to 25,000 cases on Sunday, and the city is in its third week of lockdown. Now, Shanghai’s Economic and Information Technology Commission has published a statement on WeChat explaining its plans on how businesses can reopen. But there was no timeline attached to these plans. Key takeaways include:

  • Most vegetable producers in the region have resumed production.
  • Shanghai aims to stop COVID from spreading outside of quarantined areas by April 20.
  • Tesla is looking to restart production as soon as this week.
  • Company truck drivers must test negative within 24 or 48 hours of entry, depending on which test the driver uses.
  • Companies with a lot of workers will have a makeshift hospital set up.
  • Visitors will be tightly restricted.

Key comments:

“The main challenge the economy faces is the omicron outbreaks and the lockdown policies that restrict mobility,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management. “More liquidity may help on the margin, but it doesn’t address the root of the problem.”