China locks down tech hub of Shenzhen as Covid outbreak spreads

China placed the 17.5m residents of the southern city of Shenzhen into lockdown for at least a week, spurring a key Apple Inc. supplier to halt production as authorities sought to gain control of a spreading Covid-19 outbreak in the vital technology hub. The lockdown, which came after virus cases doubled nationwide to nearly 3,400, will be accompanied by three rounds of city-wide, mass testing. Called with little notice on Sunday, the order followed earlier restrictions placed on Shenzhen’s central business district, and will last until March 20. All bus and subway systems were shut, and businesses, except those providing essential services, have been closed. Employees were told to work from home if they can. Residents will be barred from leaving Shenzhen -- home to the headquarters of tech giants Huawei Technologies and Tencent Holdings, as well as one of China’s busiest ports -- except in limited situations. Shenzhen Yantian Port remains operational, though with tighter Covid controls. Apple supplier Hon Hai Precision Industry Co., known as Foxconn, said it was halting operations at its Shenzhen sites, one of which makes iPhones. The company, which has its China HQ in Shenzhen, didn’t specify the length of the shutdown, though said it would reallocate production to other plants in the country. Chipmaker Umicron Technology Corp. also suspended output.The surge in infections in Shenzhen is thought to be linked to an unbridled outbreak in neighboring Hong Kong, which went from a handful of cases to more than 30,000 in about a month. A Covid flareup in Shanghai has also seen most schools returned to online learning and travel into the city restricted. Bus services from other provinces were halted at the weekend, and China’s aviation regulator is in discussions with airlines about diverting all international flights into the financial center, Bloomberg News reported Friday.<br/>
Bloomberg
https://finance.yahoo.com/news/china-locks-down-iphone-tech-235320042.html
3/14/22