The majority of Japanese factories in Shanghai have yet to resume any production, with the city’s lockdown still damaging business activity even as the local government claims that production is getting back on track.
Almost two-thirds of factories haven’t resumed any production yet, while another 28% are running at less than 30% capacity, according to the results of a survey of Japanese firms in the city. None of the 54 companies with factories in Shanghai are back to planned levels of output, and only 37% of firms had permission to resume output.
The results are at odds with the claim from the city’s government that more than 70% of industrial firms had resumed production as of Wednesday, and show that it will take a lot longer for economic activity to return to normal. More than half of the Japanese firms said they are unable to source any supplies, indicating supply chain problems that have clogged the port and slowed exports continue to be serious.