<p class="title">Key iPhone maker Pegatron has halted operations at two subsidiaries in the Chinese cities of Shanghai and Kunshan, as global supply chains feel the pinch of Beijing's strict zero-Covid measures.</p>.<p class="bodytext">The business hub of Shanghai has become the heart of China's biggest Covid-19 outbreak since the virus surfaced more than two years ago.</p>.<p class="bodytext">The city of 25 million has remained almost entirely locked down since the start of the month.</p>.<p class="bodytext">"We have temporarily suspended work," said Pegatron in a filing to the Taiwan Stock Exchange on Tuesday.</p>.<p class="bodytext">The Taiwanese firm said it "actively cooperates with local authorities" and would try to resume operations as soon as possible.</p>.<p class="bodytext">The suspensions apply to two of its subsidiaries, in Shanghai and nearby Kunshan city.</p>.<p class="bodytext">Stay-at-home orders and stringent testing rules have strained supply chains in and around Shanghai, home to the world's busiest container port and a critical gateway for foreign trade.</p>.<p class="bodytext">China reported nearly 28,000 local virus cases on Wednesday, the vast majority in Shanghai.</p>.<p class="bodytext">Many factories have been forced to halt operations as virus cases have surged, while some staff has been living in their workplaces as businesses struggle to operate.</p>.<p class="bodytext">Pegatron's suspensions mark the latest blow to Apple, which has seen disruptions at other suppliers' assembly lines in recent months as Chinese cities struggle to curb virus outbreaks.</p>.<p class="bodytext">In March, another major supplier Foxconn halted operations in the Chinese tech hub of Shenzhen. But, it has "resumed fundamental operations" in Shenzhen as of late March, the company said.</p>.<p class="bodytext">Chinese authorities have struggled to maintain the flow of goods across the country as tough virus controls slow movement. A Transport Ministry circular issued late Tuesday barred the "blocking of road transportation" vehicles and personnel, ordering more efficient Covid-19 screening along transport routes.</p>.<p class="bodytext">Anxious about the spring farming season and food supplies, officials in virus-hit areas such as the northeastern province of Jilin have also issued travel passes to let agricultural workers return to farmland on chartered buses.</p>.<p class="bodytext">"The Chinese economy has been facing a rising risk of recession since mid-March", Nomura analysts warned this week, citing severe disruptions to the delivery of exports, with coastal areas hit hard by controls to rein in the virus.</p>
<p class="title">Key iPhone maker Pegatron has halted operations at two subsidiaries in the Chinese cities of Shanghai and Kunshan, as global supply chains feel the pinch of Beijing's strict zero-Covid measures.</p>.<p class="bodytext">The business hub of Shanghai has become the heart of China's biggest Covid-19 outbreak since the virus surfaced more than two years ago.</p>.<p class="bodytext">The city of 25 million has remained almost entirely locked down since the start of the month.</p>.<p class="bodytext">"We have temporarily suspended work," said Pegatron in a filing to the Taiwan Stock Exchange on Tuesday.</p>.<p class="bodytext">The Taiwanese firm said it "actively cooperates with local authorities" and would try to resume operations as soon as possible.</p>.<p class="bodytext">The suspensions apply to two of its subsidiaries, in Shanghai and nearby Kunshan city.</p>.<p class="bodytext">Stay-at-home orders and stringent testing rules have strained supply chains in and around Shanghai, home to the world's busiest container port and a critical gateway for foreign trade.</p>.<p class="bodytext">China reported nearly 28,000 local virus cases on Wednesday, the vast majority in Shanghai.</p>.<p class="bodytext">Many factories have been forced to halt operations as virus cases have surged, while some staff has been living in their workplaces as businesses struggle to operate.</p>.<p class="bodytext">Pegatron's suspensions mark the latest blow to Apple, which has seen disruptions at other suppliers' assembly lines in recent months as Chinese cities struggle to curb virus outbreaks.</p>.<p class="bodytext">In March, another major supplier Foxconn halted operations in the Chinese tech hub of Shenzhen. But, it has "resumed fundamental operations" in Shenzhen as of late March, the company said.</p>.<p class="bodytext">Chinese authorities have struggled to maintain the flow of goods across the country as tough virus controls slow movement. A Transport Ministry circular issued late Tuesday barred the "blocking of road transportation" vehicles and personnel, ordering more efficient Covid-19 screening along transport routes.</p>.<p class="bodytext">Anxious about the spring farming season and food supplies, officials in virus-hit areas such as the northeastern province of Jilin have also issued travel passes to let agricultural workers return to farmland on chartered buses.</p>.<p class="bodytext">"The Chinese economy has been facing a rising risk of recession since mid-March", Nomura analysts warned this week, citing severe disruptions to the delivery of exports, with coastal areas hit hard by controls to rein in the virus.</p>