China said on Friday that it will help hundreds of companies in key sectors to resume production in locked-down Shanghai, the commercial capital at the centre of the country'slatest COVID-19 outbreak, as businesses warn of the growing economic toll of restrictions.
The announcement comes as a growing number of business leaders and analysts warn that China's strict "zero-COVID" policy is triggering economic disruptions that are rippling through global supply chains for goods from electric vehicles to iPhones.
The Ministry of Industry and Information Technology will work with 666 companies making semiconductors, automobiles, and the medical sector to get back to work, it said in a statement late on Friday.
Teams have been sent to Shanghai to ensure the resumption of work at these key industrial companies, the regulator added.
Electric-car maker Xpeng and technology giant Huawei warned of looming industry-wide suspensions of output suspensions if suppliers in Shanghai and surrounding areas cannot resume work, while numerous foreign firms have recently announced production halts at their Chinese plants.
Airlines and the property sector are also feeling the pain.
On Friday the transport ministry announced a national pass system to let cargo vehicles move between higher risk zones without delays, as long as drivers have normal temperatures and a negative virus test no older than 48 hours.
