Over the last two months, and especially for companies with branches or employees from there, you will have undoubtedly heard about the increase in city-wide lockdowns. These are particularly strict in Shanghai. In the most significant surge of COVID-19 cases since 2020, officials in many major Chinese cities have taken drastic precautions.
Citizens must stay at home and avoid contact with others, and healthcare workers administer daily mandatory testing. Quarantine regulations remove those who test positive away from heavily populated areas.
These lockdowns have affected companies in multiple ways. However, there are potential solutions for those who still need to do business in Shanghai.
How are These Lockdowns Impacting Businesses?
With over 200 million people on lockdown, Shanghai and other cities in a similar situation have seen their workforce drastically limited. This situation has caused some disruption in the supply chain for several key industries. This disruption includes automobile and technology factories.
Major companies such as Volkswagen, Tesla, and Toyota have suspended operations. Pegatron, a Taiwanese tech company that provides parts for Apple phones, has suspended production in all its factories in and around Shanghai.
The Shanghai port has not been closed officially. However, the lack of available dockworkers has caused transportation and delivery delays. As flights and train schedules are heavily restricted, this has also resulted in issues with shipment and manufacturing.
How Can Businesses Adapt to These New Lockdowns?
Several companies and factories in Shanghai or other locked-down cities have implemented closed-loop systems. This is where workers sleep, live, and work in the same place to keep from being in contact with others.
Some factories also have dormitories so that workers can stay on-site and continue operations to continue regular operations.
Other businesses have adapted their schedules to fit work-at-home routines, allowing their employees to maintain their jobs while in lockdown. Some employers have sent their home-bound employees boxes of food and supplies. In these ways they hope to take care of their employees during this time of crisis.
As of April 16, the Shanghai Commission of Economy and Information has also issued guidelines to assist companies wanting to restart operations. These guidelines detail distancing protocols and precautions necessary to ensure that the workers and the work environment remain healthy and risk-free.
INS Global Offers a Range of Options to Help
Despite initial optimism and regular updates concerning the reopening of specific districts around the city, the lockdown in continuing. Constant new cases have left many workers or areas without clear ideas of when this wave of lockdowns will end.
If your company is based in parts of China affected by the pandemic, you may find yourself struggling to restart operations. Here are some ways our services can be of assistance in these circumstances:
With the current lack of available workers in Shanghai, you may need to look elsewhere for those who can work on your projects.
INS Global has a team of recruitment experts who can help you locate the right talent. That could be an independent contractor to fill a temporary gap or a new full-time employee. Our expertise in all areas of Chinese labor regulations makes sure that you can hire with the security of full legal compliance.
Local officials have made it clear that they will not allow the current situation to be an excuse for companies to neglect their workers in locked-down cities. During this period of uncertainty, our legal advisors can work with you to provide payroll outsourcing services. These can be used to guarantee that all your employees are being taken care of and receiving the correct benefits in these challenging times.
Alternative Employment Outsourcing Options
Managing and maintaining a business in China can be challenging at the best of times but particularly costly during this situation. INS Global offers a range of global PEO (Professional Employer Organization) and Employer of Record (EOR) services that could help you cut down on downs associated with business management while streamlining your structure.
Our global expansion experts can also assist and advise you through the steps for closing your company abroad. We can help you begin again under a new type of structure if that would better suit your situation.
Let INS Global’s Expertise and Experience in China Benefit You
We have over 15 years of experience helping companies enter and succeed in the Chinese market. Together, we can create specific solutions that will leave you and your employees feeling secure and satisfied.
In this crisis period, you need to know support and guidance are available. The Shanghai government has also offered 149 billion yuan in tax incentives, low-interest loans, and reduced or exempted rent fees. These initiatives are meant to ease the plight of businesses affected by the lockdown. They may also present new opportunities going forward.
To find out how your business could benefit or discover how your operations could make the most of our services, contact one of our advisors today.