Automobile, Electric, Semiconductor, and Bio-Centered Companies Have Already 'Phase 1' Resumed
Phase 2 List Includes Many Courier Transport Companies to Resolve Logistics Issues
Achieved 'Zero COVID Cases in Social Sections' for Two Days... Controlled Zones Still See Over 5,000 Daily Confirmed Cases
An automotive air conditioner factory in Shanghai operating under a closed-loop system. Photo by Xinhua, Yonhap News
[Asia Economy Intern Reporter Kim Se-eun] Shanghai, China has cautiously begun the process of 'normalization' as the number of COVID-19 confirmed cases decreases.
On the 30th, the daily new confirmed cases in China stood at 7,872, marking the lowest number since the full lockdown was implemented on the 2nd.
According to economic media Caixin and others, Shanghai authorities created a 'white list' on the 28th selecting companies for the second phase of work resumption and individually notified each targeted company.
Earlier, on the 11th, the authorities placed 666 companies within the jurisdiction, including Tesla, Shanghai Volkswagen, and SMIC, on the 'first white list,' allowing them to resume operations under the condition of a 'closed loop.' The closed loop refers to a method where employees live and work inside the factory, completely isolated from the outside.
However, the creation of the second list has not been officially announced. Details such as the company list or scale have not yet been disclosed.
The first list included key companies in sectors such as automobiles, electronics, semiconductors, and biotechnology, and was managed by the Shanghai municipal government.
The management of the expanded second list is entrusted to each district government under the city.
Companies known so far include UNISOC (Ziguang Zhanrui), a system-on-chip (SoC) manufacturer for smartphones affiliated with Tsinghua Unigroup, Qualcomm's Shanghai branch, Huawei, the state-owned HDSC (Huada Semiconductor) producing microcontroller units (MCUs), Onsemi, an American automotive semiconductor manufacturer, and Panasonic, with the majority in the semiconductor and electronics sectors.
To restore the paralyzed logistics, major courier companies such as SF Express and Zhongtong were also largely included. Additionally, suppliers providing parts to complete vehicle manufacturers, such as automobile seat manufacturers, were included in the second list.
Selected companies will receive 'work resumption certificates' and 'priority enterprise vehicle permits' from their respective districts before resuming operations.
Like the companies on the first list, these companies must operate their factories under the closed loop system.
However, according to Shanghai's announcement, even among the companies on the first list that resumed operations first, 20% have yet to restart production.
Even where operations have resumed, the operating rates remain low except in some industries such as semiconductors.
Meanwhile, from the 29th, the essential condition for easing Shanghai's lockdown, the 'zero COVID in the community' goal, was also achieved. 'Zero COVID in the community' means that no new confirmed cases have been reported in the 'community' areas outside designated quarantine or controlled zones.
However, with more than 5,000 confirmed cases still occurring daily mainly in controlled zones, health authorities are proceeding very cautiously with the normalization of society and the economy.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
