Stock Groups

Japanese factories in Shanghai struggling to resume operations, survey shows -Breaking

[ad_1]

© Reuters. FILE PHOTO – A street locked down during the COVID-19 pandemic in Shanghai, China on May 5, 2022. REUTERS/Aly Song

BEIJING (Reuters – Japanese businesses are facing difficulties reopening factories in Shanghai. The survey is a result of strains in municipal government efforts to assist key companies in restoring production during the current tight city lockdown.

The Shanghai Japanese Commerce & Industry Club said on Thursday of 54 firms that responded to a survey it conducted between Apr.27-30, 63 percent responded that their factories hat yet to resume operations.

Over three quarters of those who have resumed production said that their production levels were at or below 30% of normal.

According to its website, the club boasts more than 2300 members.

These problems were caused by the requirement of government that companies implement “closed-loop management” in order to reopen. It is a similar process to a bubble-like arrangement where workers are isolated and live, sleep, and work together to stop virus transmission.

This made it especially challenging for plants that didn’t have dormitories, and employees who were still subject to mobility restrictions.

According to the survey, “A condition of an operation permit is that it must have a sealed-off factory life but then it has problems with bathing or sleeping and eating. It is not possible to live there.”

According to it, “The zero COVID policy has a detrimental impact on personnel interactions, logistics and the ability of work,”

Shanghai implemented a lockdown in the city on April 1, at the request of the central government. This policy has been in place to eradicate COVID-19, and it is still fighting China’s most severe outbreak.

Although authorities at the economic hub say they are keen to support businesses in reopening, and have made a priority listing of nearly 2,000 companies to do so, many business chambers and companies claim that the requirements for restarting work have been too burdensome.

A member survey by the European Chamber of Commerce in China was published on Thursday. The results showed that more than a quarter of respondents are considering leaving China for current or planned investments.

[ad_2]