Shanghai Factory Closures Mount as Covid-19 Lockdowns Hit Supply Chains

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Shanghai Factory Closures Mount as Covid-19 Lockdowns Hit Supply Chains
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Shanghai manufacturers are having more trouble getting parts delivered because China’s restrictions on movement are making it difficult for trucks to enter the region

Barricades, panic buying and empty streets are some scenes from Shanghai as China’s most populous city imposed a new lockdown. Offices and factories – including Tesla’s – were affected by China’s measures against its worst virus outbreak in two years. Photo: Aly Song/ReutersMore factories in and around Shanghai, including two run by an Apple Inc. supplier,because of extended Covid-19 lockdowns in the region, adding to pressure on the global supply chain.

Analysts said Shanghai-area manufacturers were having more trouble getting parts delivered because China’s restrictions on movement are making it difficult for trucks to enter the region. That means some factories can’t operate normally even if they manage to keep workers on the job.

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