China is taking stricter measures to stabilize supply chains, pledging financial aid and possible exemptions to allow some business activities to resume to limit the damaging impact of Covid restrictions.
The authorities will improve living and working conditions in the logistics industry and provide employees with financial support such as: B. the deferral of loan repayments, according to a state media release of a meeting attended by Vice Premier Liu He and chaired by State Councilor Xiao Jie on Monday.
Strict restrictions to combat coronavirus infections are straining the economy and threatening supply chains.
The lockdown in Shanghai has led to factory closures and a shortage of trucks to transport goods, with containers piling up at the port, which is the world’s largest.
According to freight forwarder Flexport Inc., it now takes an average of about 115 days for goods to reach a US warehouse after being manufactured at a factory in China, up from 50 days in 2019.
To support supply chains, the government will create “white lists” of companies in sectors such as automobiles, semiconductors, consumer electronics, food, appliance manufacturing and medicine, and foreign trade, the official Xinhua News Agency said.
The report does not provide further details, although a similar “white list” of Shanghai companies was released late last week, allowing companies to make plans to restart production.
Officials also urged local governments to ease mobility restrictions for logistics workers at checkpoints and to recognize the results of their Covid tests conducted in other regions.
China will spend 1 trillion yuan ($145 billion)
The report cites a 200 billion yuan reending program focused on technological innovation along with a 100 billion yuan program focused on transportation and logistics.
The meeting came days after the People’s Bank of China and the country’s banking regulator pledged financial support to logistics companies and truck drivers.