Lockdown in Shanghai: Resumption of operations for qualified companies

published on 11 May 2022 | reading time approx. 1 minute

Some companies are allowed to continue producing despite the lockdown, but only in strictly closed-loop systems. Despite the "closed-loop", a central problem remains that companies cannot obtain urgently needed materials and raw materials or cannot get their own goods from their own factory, or can only do so with great difficulty. Shanghai has meanwhile issued a so-called "white list" for the resumption of operations for 666 qualified enterprises, which is to be successively expanded to 1,188 enterprises. There is also the possibility of applying for so-called transport passes for essential goods, medicines, food and strategic reserves, power supply, key information technology and foreign trade.

The local government in Shanghai issued guidelines for industrial enterprises as well as FAQs for commercial enterprises in early May, according to which resumption of operations is possible. According to the guidelines, industrial enterprises have to take safety precautions from a total of six areas, including a four-colour zoning of the premises according to the risk of transmission. Where the green zone is the normal production zone, the blue zone is the observation zone for new arrivals, the yellow zone is the quarantine zone and the red zone indicates the presence of infection. For employees returning to work and new hires, two tests per day are mandatory, one antigen test in the morning and one PCR test in the afternoon; for manufacturing employees, the appropriate nucleic acid and antigen testing requirements apply depending on the "three zones" of the business location (locked down, controlled or precautionary area). As expected, when commercial enterprises resume operations, first preference is given to enterprises whose goods or services are important for pandemic control or for supplying the population. All other companies can submit an application to the locally responsible department of the Ministry of Commerce for inclusion in the white list.