Hundreds of Chinese companies are once again forced to adjust to Lokdown in Shenzhen

Hundreds of Chinese companies are once again forced to adjust to Lokdown in Shenzhen

The city of Shenzhen, located in south-east China, is not only a megacities with 12.5 million inhabitants, but also a major industrial centre; therefore, the new demands by the authorities to restrict the activities of local enterprises due to a new wave of coronavirus infection are well-founded news for the Chinese industry as a whole.

The Bloomberg Agency reports that the Chenzhen municipal authorities have approached representatives of the hundreds of major PRC companies to organize a closed cycle of residence and work for employees of enterprises located in the area, and that the outbreak of coronavirus infection is forcing the city to take unsavory measures, limiting the movement of labour across Shenzhen territory for seven days.

The regulations were reported to have been obtained by the companies Foxconn, Huawei, ZTE, DJI and BYD, which have production facilities in the region. Each of them risks in its own way, since the organization of production activities under sanitary restrictions usually reduces the volume of production. Huawei and ZTE produce smartphones and telecommunications equipment, BYD is a major producer of electric vehicles and traction batteries for them, DJI produces quadrocopters, and Foxconn remains the largest apple contractor for consumer electronics. Considering that by September the latter company should have a sufficient supply of a new generation of finished iPhones, the new locodan can prevent it.