Shanghai allows more companies to resume operations

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What’s new: The Shanghai municipal government has approved the resumption of production by a second group of companies, with most parts of the city still in lockdown amid omicron outbreaks.

Semiconductor, pharmaceutical, petrochemical, mechanical and logistics companies make up a large part of the city’s second list of businesses to be restarted.

It’s unclear how many businesses are on the latest list because repossession orders have been distributed by each of the city’s wards. In the Pudong New District alone, 342 companies have obtained certification.

Telecom giant Huawei Technologies, chipmaker Unisoc, major courier service YTO Express Group Co., Dow Chemical Co. and Panasonic Holdings Corp. are on the list.

The background: Shanghai released its first list of 666 companies which could potentially resume operations nearly two weeks ago when the city entered its fourth week of Covid-19 lockdown.

Two-fifths of the companies on the initial list were from the automotive sector, including electric car maker Tesla Inc. and SAIC Volkswagen Automotive Co. Ltd.

Companies on the list can move forward to resume production with closed-loop management, in which workers live in workplaces largely separated from the general population and undergo regular testing, to control the risks of infection, according to the Shanghai government.

Businesses can submit their repossession requests to the city government for review.

Quick Takes are condensed versions of China-related stories for quick news that you can use.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simonon (bob.simison@caixin.com)

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