Ministry: Most Shanghai factories resume operation as Covid controls ease.

Beijing China's Ministry of Industry and Information Technology says factories in two Covid-affected industrial hubs have mostly resumed work.

Vice Minister Xin Guobin said Tuesday that 96.3% of industrial enterprises tracked by the government have resumed work in Shanghai, China's largest metropolis by GDP.

Guangdong, an industrial heartland, has returned to regular output, Xin added.

After a two-month closure to control a Covid epidemic, Shanghai reopened this month. In March, Guangdong shut down. Some factories, mostly those on a government whitelist, could run if workers lived on-site in bubbles.

Tesla has reached full production, while SAIC's manufacturing in early June rose over 60% year over year, Xin said. SAIC is Volkswagen and GM's Chinese partner.

Tesla, Volkswagen and GM did not immediately respond to a CNBC request for comment.

Xin stated Shanghai's auto sector production is "steadily expanding" He gave no numbers.

In Jiangsu, Zhejiang, and Anhui, Xin added, manufacturing resumed "better than predicted"

“Many enterprises claimed they would strive to recover lost output in May and June,” Xin said.

In early May, Nomura estimated that the recent lockdowns had a negative impact on China's GDP of 31%. As of Monday, that figure had dropped to 9%.

It's unknown how quickly China will recover from Covid and economic restrictions. Manufacturers can keep producing if workers live on-site and trucks can carry supplies.

China is set to release May industrial production and retail sales on Wednesday. 

In April, industrial production decreased by an unusually steep 2.9%. However, the rate of fall in May is predicted to improve by 0.7 percent year over year.