Beijing: The world's largest electronics wholesale market is located in Shenzhen, China's southernmost technology hub. As local authorities tighten controls to prevent a new COVID-19 outbreak, the local supply chain was once again disrupted.
On Monday morning, local businesses received a notice saying the area would remain closed until Thursday. According to Huaqiang Electronics World, one of the district's largest operators, all tenants will have to work from home during this time and undergo nucleic acid testing every day.
Several more comprehensive measures were launched by the Shenzhen government on Monday, including the closure of five additional sub-districts in the commercial centers of Futian and Luohu. These measures include the suspension of business operations in Huaqiangbei.
All shops in the affected areas have been asked to close, except for essentials like supermarkets, restaurants and pharmacies. Only takeaways from the restaurant are allowed. Dine-in services are no longer available at all.
According to the metro operator, the Shenzhen government also ordered the permanent closure of 24 metro stations, most of which are located in Futian and Luohu.
As Beijing tries to strike a balance between its zero-Covid policy and maintaining economic activity, the city of more than 17 million people managed to contain the Covid-19 outbreak after a week-long lockdown in March, a as revered. Model of effective governance.
Recent actions, however, highlight the difficulty facing China in attempting to balance two very different objectives.
Premier Li Keqiang urged Shenzhen to take the lead in "injecting new dynamism" in stabilizing growth and development during a visit to the city earlier this month.
The recent wave of infections across the country has imposed strict lockdowns and widespread quarantines, from the city of Daqing in Heilongjiang province in the northeast to the city of Haikou on the tropical island of Hainan.
Beijing's zero-tolerance policy towards the coronavirus has resulted in a "new normal" in China. In contrast, Singapore and other Asian countries have embraced life with COVID-19.
Shenzhen is conducting a targeted lockdown of residential compounds and regular mass testing. Shenzhen has seen a surge in new cases since mid-August and reported 11 new cases on Sunday.
Given that the high-tech sector was expected to contribute 20% to Shenzhen's GDP in 2020, the temporary closure of Huaqiangbei increases supply chain risks.
Business in Huaqiangbei came to a standstill for several days during the citywide lockdown in March. In June, some shopping centers and office buildings in the neighborhood were partially closed.
Major industrial areas were put into "bubble production" mode by the city last month.
Key manufacturing companies, including Huawei Technologies Co, China's top chip maker Semiconductor Manufacturing International Corp, and Apple supplier Foxconn Technology Group, were ordered to follow a "closed-loop" system for a week that restricted employee movement while maintaining production schedules
Japan PM Fumio Kishida pledges USD30 billion to Africa
