China must stabilise its supply chains amid Covid-19 outbreaks with local governments playing a key role, said Vice Premier Liu He, who is the top economic adviser to President Xi Jinping.
Intensifying Covid-19 flare-ups are disrupting China’s logistics chains, clogging highways and ports and shutting numerous factories. The impact is already spilling over into global supply chains.
Data on Monday showed a significant slowdown in March economic activity, and analysts say April is likely to be worse as tough lockdowns drag on.
Authorities must ensure traffic permits for drivers are recognised across the country, and transport should not be limited on the grounds of waiting for drivers’ Covid-19 test results, Xinhua said on Monday.
“We should solve outstanding problems one by one in key regions,” Liu said, according to Xinhua news agency, adding that the government will create a “white list” of key industrial firms that need help recovering from disruptions.
The Ministry of Industry and Information Technology said it will work with 666 companies making semiconductors, automobiles, and the medical sector in locked-down Shanghai, it said in a statement late on Friday.
• Reuters with additional editing by Jim Pollard
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