Shenzhen, a city in China with the most factories; suffers from a Covid-19 outbreak

A recent Covid-19 outbreak has brought all production in Shenzhen to a standstill. This city, which borders Hong Kong, is known for having the highest concentration of electronic component manufacturing in China, with entire neighborhoods relying on the economic activity generated by these factories . With factories and transportation paralyzed by the Covid-19 outbreak, the regular supply of many electronic products is at risk.

The city of 17,5 million people has ordered the suspension of production at non-essential businesses . Factories fall under this " non-essential " category, meaning the world's largest electronics factories are closed until the outbreak is under control.

Shenzen closes and therefore a large part of Chinese production

Foxconn has announced the suspension of production at its Longhua and Guanlan factories until further notice. Foxconn is known as the world's largest electronics manufacturer. They supply brands such as Apple and Samsung, among many others. Although Foxconn has several factories around the world, the Shenzhen plant is the second largest in China and is where the majority of its production takes place.

Epidemiologist and health economist Dr. Eric Feigl-Ding says these new Covid restrictions in China have the potential to bring the global supply chain to a complete standstill for some time . Other major brands will also be affected, as Huawei, Tencent, and Oppo are also headquartered in Shenzhen.

Even neighboring companies in Hong Kong, which is just across the border from Shenzhen, are expected to close alongside those in Shenzhen to prevent the spread of the virus. At least 30 Taiwanese companies have announced production shutdowns . Since these companies produce many vital components for assembling more advanced products, these closures will have many short-term repercussions.

For now, the mandated lockdown will last six days and is scheduled to end on March 20. However, it will only end if infection rates remain low, meaning the lockdown could potentially be delayed until April. China has adopted a particularly firm stance regarding lockdowns and measures to prevent the spread of COVID-19. Furthermore, this outbreak is among the most severe since the start of the pandemic in 2020, so China will be very strict with its restrictions.

Source: TechRadar