(Bloomberg) — Companies including China’s largest chip maker and an Apple Inc supplier are continuing to operate factories in Shanghai by isolating workers and running a shut-down process authorized by local authorities, according to people familiar with the matter. Huh. ,
read most from bloomberg
The Shanghai government is allowing some manufacturers to run so-called closed-loop systems, where workers are able to work as long as they are confined to factory premises and follow certain COVID and testing protocols, the people said. The discussion on internal processes said not to be named. However, production capacity may still be affected to some extent due to disruptions in logistics and supply chains.
Pegatron Corp., which shut down iPhones in the eastern region of Shanghai until Thursday, is operating normally, according to a person familiar with the company.
Similarly, Semiconductor Manufacturing International Corp., known as SMIC, said workers living close to the chipmaker’s factory site in Shanghai’s eastern district of Pudong could continue to work with negative test results, a person familiar with the operation said. said. Its premises are functioning normally, the company had said earlier on Monday.
China’s financial hub went into a snap, phased lockdown on Monday after officials failed to contain an omicron outbreak with less aggressive measures. For the initial four days half the city will be locked down and there will be mass testing, then the other half will be from April 1. While China is the last country in the world to maintain a zero-tolerance approach to suppressing the virus, it is shifting strategy to minimize the economic damage. During Shenzhen’s week-long lockdown in mid-March, iPhone maker Foxconn Technology Group and other companies were allowed to reopen plants using closed-loop systems.
China finds a way to zero Kovid by keeping factories open
The agreement came as President Xi Jinping vowed to reduce the impact of COVID Zero and economists downgraded their outlook for China.
The world’s second-largest economy is facing its worst pressure since the early stages of the pandemic, according to Nomura Holdings Inc., which hit China to reach its ‘about 5.5%’ growth target for the year due to the ongoing outbreak doubted.
Closed loops – which effectively put factory workers in bubbles, insulated from outside contamination – were used during the Winter Olympics in Beijing. Athletes and sports-related personnel, isolated from the general public, were allowed to travel between sports venues and their hotels only by means of designated transport. This system was successful in preventing any Covid spread within the country.
Why China is sticking with its COVID Zero strategy: QuickTech
China has kept the virus at bay over the past two years by using a combination of effectively closed borders, mandatory isolation of all virus cases, and mass testing to limit the outbreak.
But more infectious forms like Omicron are challenging the regime, which is becoming more disruptive as infections grow more regularly and the rest of the world opens up. China imposed more lockdowns in March than at any time in the pandemic, with the cities of Shenzhen, Langfang and Tangshan near Beijing, the city of Changchun in the northeast and then its surrounding province, Jilin, all placed under movement restrictions. Is.
Jilin has been shut for more than two weeks now, with production at factories belonging to the world’s biggest automakers – Toyota Motor Corp and Volkswagen AG.
Read most from Bloomberg Businessweek
©2022 Bloomberg LP