China forces factories of major companies into coronavirus lockdown in Shenzhen

China forces factories of major companies into coronavirus lockdown in Shenzhen

China’s Shenzhen government on Monday ordered the top 100 companies in the manufacturing hub to implement a “closed loop” system in which workers must work, sleep and stay in factories for at least a week to contain an endemic epidemic of the Chinese coronavirus. , Bloomberg News reported.

“China has forced some of its biggest companies, including iPhone maker Foxconn and oil producer CNOOC Ltd., to operate under a ‘closed loop’ restriction system for seven days,” Bloomberg reported on July 25, citing a municipal government order issued by Shenzhen. Those days.

“The city government told its 100 largest companies, including automaker BYD Co., networking giant Huawei Technologies Co. and ZTE Corp. And drone-maker DJI to limit operations to employees living in a closed loop or bubble, with little to nothing in between. contact with people outside their plants or offices,” relayed the US-based media outlet.

“Authorities have asked companies to reduce unnecessary interactions between non-production workers and factory floors to reduce transmission,” Bloomberg News noted.

Reuters reported on the Shenzhen factory lockdown on Monday. The news agency cited the same order, reportedly issued by Shenzhen’s Department for Industry and Information.

“[M]Major companies including BYD Co, Huawei Technologies Co, and ZTE Corp must reduce entry and exit into so-called loops,” the directive said.

Shenzhen has a population of about 18 million. The city is located directly north of Hong Kong and is considered a “Special Economic Zone” in China. This status allows Shenzhen to “remain open to foreign investment, technology and managerial expertise through the establishment of foreign-owned, joint-venture and other business ventures”. Encyclopaedia Britannica. Shenzhen’s global connectivity extends to its container port, which is the fourth-busiest worldwide.

Shenzhen’s manufacturing output is likely to drop in the coming weeks as a result of the city’s new “closed-loop” factory system Lockdowns threaten to negatively impact not only China’s economy, but also wider Asia and the world.

The Shanghai government issued a similar order locally in April that not only forces employees to work in selected factories and live on-site but also shuts down many others unable to comply with such protocols. The Shanghai manufacturing plants that implemented the “closed loop” system did so at full production capacity operating costs The effects of Shanghai’s factory lockdown earlier this year are being felt across global supply chains.

Reuters reported on the city’s evolving anti-epidemic situation on July 25, “Shenzhen did not order business closures or strict restrictions on people’s movement but sealed off residential compounds and buildings identified as high risk.”

“Many offices, restaurants and public spaces require proof of a COVID [Chinese coronavirus] Test within 24-hours from Monday,” according to the news agency.

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