What sectors are prioritized in terms of applying for production resumption?

A: Currently, applications for production resumption are primarily accepted from companies in five sectors: those ensuring the city’s normal operations, anti-pandemic supplies, important function guarantee, continuous production and supporting infrastructure. The local government is also providing full support to large industrial-chain businesses that have major influence on the Yangtze River Delta and national industrial and supply chains.

How many businesses have resumed work and production so far?

A: The Shanghai government recently issued the “Work Plan for Key Enterprises on Continuous Production (Trial),” and released “Guidelines for Shanghai Industrial Enterprises to Resume Production with Pandemic Prevention and Control (First Edition).”

It also established a “white list” for key enterprises. So far, the first batch of 666 enterprises and a second group of 1,188 have been included on the list.

Under the premise of pandemic prevention and control, Shanghai has made some progress in the resumption of work and production.

The next step will be to issue a notice on the resumption of commercial and trade enterprises and guidelines on the prevention and control of the pandemic, as well as establishing a “white list” for commercial and trade companies to resume operations.

Meanwhile, authorities at the municipal and district levels will continue to support enterprises, helping them with employee shift, nucleic acid testing and stockpiling anti-pandemic and living supplies.

If my company is not on the “white list” while our clients are among the first batch of enterprises to resume work, when can we start business?

A: In the early stages, Shanghai is focusing on leading companies like SAIC, Tesla, SMIC and Huahong and related supporting enterprises, in the hope this will help the resumption of work among upstream and downstream businesses in supply, industrial and even logistics chains, and then extend work resumption to related enterprises in the Yangtze River Delta region.

At the same time, all three provinces (Zhejiang, Jiangsu and Anhui) and the city in the delta will further optimize the “white list” and expedite the trial implementation of the “white list pool” for key industrial and supply chains and their suppliers in different areas of the delta region. This approach will expedite the recovery of entire industrial chains in the region.

What construction sites can resume work?

A: According to the pandemic situation, construction sites are divided into three types: red, yellow and green, and different control measures are carried out for each type. Red sites have the most stringent control measures, while yellow and green sites have lower levels of control.

Among them, red sites are the focus of supervision, which implement a complete shutdown and closed-off management. Living, office and construction areas are isolated separately, and movement between different areas is only allowed for personnel delivering supplies. All areas of these sites should carry out comprehensive disinfection every six hours.

For yellow sites, all activities should be staggered in shifts and personnel exchanges should be avoided.

Employee shifts are permitted in green sites, with strict verification of incoming personnel. Employees must show negative nucleic acid test results from within the prior 48 hours or the “returning-to-work code” along with taking an antigen self-test at site entrances.

New hires and returning personnel should undergo a two-day isolation with individual accommodations in sanitary conditions. They can resume work in an orderly manner in line with relevant policies.

What is the application process for enterprises to resume work and production? To whom should they apply?

A: The whole process can be roughly divided into five steps: preparation, application, inspections, notification of work resumption and returning to work and production.

In line with guidelines for enterprises to begin the orderly resumption of work with controlled risks against this round of the pandemic, enterprises should adequately prepare for personnel involved in production and operations, including a prevention and control plan, and submit the application form to the business park or town where they are located.

After receiving applications from enterprises, the business parks or towns will make a series of assessment, including the implementation of primary responsibility; classification management of the premises; employee management; logistics management; guarantee of anti-pandemic materials; and an emergency disposal plan to verify the situation and issue approvals.

Enterprises that have been approved are included in the list of businesses resuming work and production.

How do we apply for the electronic pass for employees’ return to work?

A: To steadily promote the resumption of work and production, and strengthen the health management of returning staff, the city’s big data center has placed a digital pass online for returning staff on the Suishenma page.

Staff included in the “white list” who work in buildings that have not had a positive case in the previous seven days can apply for this pass. Eligible enterprises should apply to relevant departments in their districts.

While enterprises are resuming production, how should we address transportation and cross-province logistical problems?

A: For freight needs, passes will be issued for the intra-city and cross-provincial movement of freight vehicles, and a digital pass on the Suishenban platform will facilitate real-time verification of traffic management authorities.

Enterprises can apply for the pass in or out of the city. After approval, the digital pass can be shown on Suishenban with functions including dynamic verification of personal information, results of nucleic acid and antigen tests, and route information.

A special cross-provincial work team has been formed focusing on automobile, chemical and other industries with high logistics needs. Inter-provincial production material transit stations have also been created to open up a regional transportation channel for production materials.

How and where do enterprises apply for the Key Material Transportation Vehicle Pass?

A: Enterprises can download the Key Material Transportation Vehicle Pass application form, and submit it along with relevant application materials via e-mail to the authority for cross-provincial transportation.

For example, commercial goods and household material enterprises should apply to the city’s commission of commerce or commercial district authorities. Those producing or selling medical and pharmaceutical materials should log onto the Shanghai Health Commission’s portal website to download the application form.

Energy-related enterprises are classified as urban gas and other energy-preservation enterprises, and should apply to the city’s Housing and Urban-Rural Development Management Committee and the Development and Reform Commission.

After examination and approval, the enterprise, vehicle and driver information is included in the “white list” database and the list is dynamically adjusted.

The drivers included in the “white list” can apply for the pass for each transportation task via the Suishenban mobile application or its mini program on WeChat and Alipay.

Those eligible can get a digital pass and PDF version to print out; digital and paper certificates have the same effect.

How can companies carry out their responsibilities and put in place pandemic prevention and control measures?

A: Prior to resuming work, companies are required to formulate resumption and contingency plans, implement daily personnel health monitoring, and ensure the resumption of work is carried out in a safe manner.

For example, food production enterprises need to establish a sound scheme for monitoring and protecting the health of their personnel, and carry out thorough measures covering staff health checks, disinfection of production sites, inspection of incoming raw materials and checking suppliers’ legitimate proof of product certificates and inspection against finished products.

They should also make sure pandemic prevention and protection measures extend to the entire on-site workforce.

Companies involved in the production of imported cold-chain food must carry out weekly self-inspection on the “Shanghai Cold Chain” WeChat mini program, and should strictly implement every inspection procedure regarding raw material, relevant product certificates, disinfection measures and warehouse management schemes.

After employees return to work, how should companies carry out closed-loop management on site?

A: Companies should carry out full closed-loop management and ensure no physical contact is made when different groups of employees make shift changes. Moreover, all on-site staff should refrain from going outside as much as possible.

Companies should arrange transportation for staff returning to offices for drop-off at designated locations.

There should be strict control measures for external visitors at production sites and offices. Visitors must have negative nucleic acid test certificates from within the previous 48 hours and on-site negative antigen self-test results.

Are daily nucleic acid tests required for those returning to offices? What are the health-management requirements?

A: Companies should carry out daily monitoring of on-site personnel’s health status.

On a daily basis, on-site staff should take one antigen self-test in the morning and one nucleic acid test in the evening. A designated employee should compile the daily health status of all personnel.

Those with possible COVID-19 symptoms, such as fever, dry cough and fatigue, should be placed in temporary isolation spaces. Follow-up measures in accordance with relevant regulations should also be carried out.

What is the processing protocol when an employee has an abnormal health condition?

A: Companies should set up temporary isolation and observation areas based on their size.

Those with many on-site employees should set up makeshift hospitals.

If an employee has an abnormal antigen or nucleic acid test result, an immediate report must be sent to district-level disease control authorities.

The staff member in question should be sent to a temporary isolation observation area as quickly as possible. At the same time, precautionary isolation measures should be carried out for close contacts, who should be kept in different quarters.

How much pandemic prevention supplies should a company have on hand?

A: Companies should have ample reserves of pandemic prevention supplies, and purchase enough pandemic control materials and gear — including antigen self-test kits, protective masks, clothing and glasses, disinfectant alcohol, hand sanitizer, infrared and thermal-imaging thermometers and disposable medical gloves. They should also keep pandemic prevention supplies that last 14 days or more to maintain normal business operations. All used protective materials and gear should be collected and disposed of safely.

What kind of policies have been released to support enterprises to cope with the impact of the pandemic? How can one get first-hand information?

A: Since the outbreak of the pandemic in Shanghai, the government and financial institutions have introduced a number of policies to support enterprises in various industrial sectors.

Some of these policies are more applicable to small, medium-sized and micro-enterprises, while some of them are also applicable to enterprises of different ownership and sizes.

Shanghai’s one-stop cloud platform Enterprise Service has a special column titled “Fighting the pandemic and safeguarding Shanghai” on the www.ssme.sh.gov.cn website to explain relevant policies and updates. It is intended to keep companies up to date on the latest situation so that they are fully informed and can benefit from preferential policies.

What key areas and enterprises will receive credit support for the resumption of work?

A: Financial institutions will be encouraged to increase credit supply to meet the demand for funds for the resumption of work and production, set up separate credit plans, and take the initiative to meet the needs of enterprises that supply people’s livelihood security, pandemic prevention, medicine, and medical care, and material production.

Banks should provide more funding for tourism, accommodation, catering, wholesale and retail, transportation, logistics and warehousing, culture and entertainment, exhibitions, and other industries that are greatly affected by the pandemic. Banks will also be told to help out enterprises that have good development prospects and a reputation but are temporarily trapped in liquidity.

What kind of support policies will be offered by the insurance industry?

A: Insurance institutions will lower fees, delay premium payments, expand the responsibility of COVID-19 policies, and give away insurance policies to help them get through the short term.

Insurance institutions will be urged to develop and design more innovative products like liability insurance and business interruption insurance with wider responsibilities, lower prices, and more coverage on the basis of controllable risks. Insurers are called upon to provide more protection for the production and operation of small and micro enterprises and related people, offer customized insurance schemes for drivers, postal couriers, medical staff, community workers, and public welfare volunteers, and provide diversified, all-round, and inclusive insurance protection.

Shanghai will support local insurance companies to further enrich the supply of anti-pandemic insurance products, expand the insurance guarantee responsibility in COVID-19, expand the coverage of risk protection such as business interruption caused by pandemic, establish a green channel for insurance claims, and improve the efficiency of making claims.

What should an enterprise do if its production licenses expire during the lockdown?

A: Take food production enterprises as an example. If the license expires and cannot be renewed during the pandemic situation, the validity period of the food production license will be extended to one month after the lockdown is lifted.

At the same time, food production enterprises should strengthen the health management of employees; it is forbidden to hire personnel suffering from diseases that hamper food safety.

Can enterprises delay the payment of wages to employees if their normal operation is affected by the pandemic or other control measures?

A: Enterprises that have encountered difficulties in production and operation are allowed to postpone the payment of wages to employees if they can first reach an agreement with the trade union or employee representatives. In any case, the delay should not be longer than one month.

What rent reductions and exemptions are enterprises in Shanghai eligible for?

A: Small and micro enterprises and private businesses are entitled to three-month rent relief in 2022 if their landlords are state-owned enterprises while those located in medium- and high-risk areas or whose operations are seriously affected by the pandemic prevention and control measures are eligible to a total of six-month rental waiver during the year. Such reductions and exemptions do not apply to reletting cases.

What tax incentives can enterprises enjoy?

A: On March 24, the Ministry of Finance and the State Administration of Taxation announced that from April 1 to December 31, small-scale VAT taxpayers falling in the 3 percent rate category are exempt from tax payment while tax payment by companies falling in the 3 percent prepaid rate category is temporarily suspended. On the city level, Shanghai has also introduced a series of tax incentives, including value-added tax credit refunds and tax waivers, with priority for micro and small firms as well as private businesses.

What are the supportive financial policies for small and micro firms as well as private enterprises?

A: Financial institutions are encouraged to expand their coverage of inclusive finance and extend loan support to struggling sectors, in particular small and micro companies and private enterprises. First-time loans, credit loans and loan renewals without principal repayment for small and micro firms will be further increased while for pandemic-affected struggling companies, lenders should avoid making hasty decisions, including loan withdrawal or cut-off. Pandemic-affected sectors should be included in the key industry list of financial institutions and rewards will be granted to local banks which extend inclusive loans to small and micro firms.

What are the financial relief policies for tourism companies?

A: For qualified travel agencies, the temporary refund of travel service quality deposit will be raised to 90 percent from 80 percent. And the deposit will be replaced by insurance on a trial basis. Government-backed financial institutions are encouraged to enhance credit and guarantee services and support service renewals for those seriously affected by the pandemic. Qualified travel agencies and A-level tour sites are entitled to loan discounts.

What are the financial relief policies for freight logistics firms?

A: The city will increase credit and insurance support for transport companies, as well as individuals like truck drivers.

Banks and insurers are encouraged to optimize the approval process to offer flexible financial services for freight logistics companies which are crucial in pandemic prevention and control. Insurers should develop tailored products such as freight transport insurance and carrier liability insurance for risk management. The city will also strengthen financial support for work resumption of shipping logistics companies to ensure a smooth international supply chain.

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