China loosens blockade, supply chain ‘nightmare’ is about to end?

The blockade orders began to take effect in Shanghai in mid-March, before other waves were applied to the whole city in April and have remained until now.

Shanghai is a major manufacturing hub, so the blockade on this city has caused considerable damage. The supply disruption seems to have been predicted.

Not unexpected, both Foxconn, Tesla or Toyota have halted production or even stopped altogether. Chinese chipmaker SMIC continues to maintain production operations by moving employees to their factories or into areas with no cases.

Currently, Shanghai authorities say, has brought the spread of Covid-19 under control. The city has been in good shape as it has been 14 days with no detected infections, even after opening (restricted form) in some counties.

During a press conference on Sunday, officials said 1,700 key production-oriented businesses in the region continued to produce, along with 450 financial institutions and 580 foreign trade enterprises.

Local shops and malls are gradually reopening and many public transport services have recovered. The city government is also more active when mentioning that 88% of e-commerce warehouses are back in operation.

Shanghai city authorities have announced plans to subsidize industries including software development. Free or low-cost broadband services for small and medium businesses are a typical initiative.

The city government also hopes that the closure will help businesses accelerate the development of digital tools in management.

China’s economy has been impacted throughout 2022 as lockdowns have affected e-commerce giants JD and JD. Alibaba. Demand for smartphones has slowed down by 2022, according to data from the China Academy of Information and Communications Technology.

Shanghai’s reopening on Wednesday (June 1) will be welcomed around the world, promising to revive China’s economy.

Thai Hoang (according to The Register)