Shenzhen, China’s technology manufacturing hub, will be shut down for the next week in effort to curb the rising Covid cases. Only essential businesses are allowed to open, which is expected to cause a ripple effect on the global supply chain.
Home to Chinese tech giants including Huawei and Tencent, Shenzhen ranks third among Chinese cities in manufacturing output meaning any prolonged closure will be felt sharply.
Its factories tool the world with mobile phones, while some of China’s best tech brains go there to churn out apps and games — but Shenzhen is now in lockdown as the coronavirus inflicts economic pain on the country and rattles markets.
Residents in the city of 17.5 million — sometimes dubbed China’s answer to Silicon Valley — have been ordered not to leave unless necessary and public transport has been halted as the country battles its worst virus outbreak in two years.
Most firms have been told to switch to working from home, which is impossible for many factories whose disruption is fuelling unease over supply chains and services. But how significant is Shenzhen to China’s economy?
Home to Chinese tech giants including Huawei and Tencent, Shenzhen ranks third among Chinese cities in economic output meaning any prolonged closure will be felt sharply.
“It is a manufacturing hub and also a tech centre for China,” Hong Hao, of financial services firm Bocom International, told AFP.
Already, major Apple supplier Foxconn has suspended operations in Shenzhen while other tech manufacturers such as Netac Technology also halted some production. Mechanical and electronic products make up 80 percent of exports from the southern powerhouse, which neighbours Hong Kong.
“This is a very significant lockdown and I think the full impact is yet to be revealed,” Hong added. Zhiwei Zhang, chief economist of Pinpoint Asset Management, said consumption would be “hurt quickly and severely” in a lockdown, followed by production and investment.
“It’s a ripple effect,” Hong of Bocom said, noting that other parts of China which depend on Shenzhen’s output could be hit. “They would be working less efficiently than before.” At least six companies on Apple’s supplier list are based in Shenzhen, where other producers such as electric-vehicle firm BYD are also based. But some businesses deemed essential remain open.
Restrictions across the country hitting key hubs could pile pressure on China’s growth target of around 5.5 percent — already the lowest annual GDP target in decades — while Shenzhen’s proximity to Hong Kong is stoking fears of challenges in stopping transmission.
The Yantian port, among the world’s busiest, is also in Shenzhen. It is the largest single port in China, with economists noting it accounts for 10.5 percent of China’s foreign trade container throughput.
In previous outbreaks, the port has been forced to suspend the processing of containers, leading to backlogs, and the current outbreak adds to worries over already-high shipping prices. The port appears to be operating for now, although virus cases could trigger disruptions.
Economists say the impact depends on how long restrictions persist. Zhaopeng Xing of ANZ Research told AFP he believed authorities “can manage Omicron” as well as before within a month or so. “The shock is short-lived,” he said, adding that it would be unlikely to hit the long-term outlook.
Source: China COVID outbreak: Lockdown in economic hub Shenzhen rattles investors
.
More contents:
- iPhone SE (2022) Review: The Most Affordable Way to Go in on Apple
- See the Fastest Way to Recharge an Electric Car
- Future Farm: Plant-Based Stadium Food (Burgers, Tacos and More)
- 7 INCREDIBLE 3D Printers (2022)
- LEAKED Artificial Intelligence News
-
.
More Remote Working Apps:
https://quintexcapital.com/?ref=arminham Quintex Capital
https://www.genesis-mining.com/a/2535466 Genesis Mining
http://www.bevtraders.com/?ref=arminham BevTraders
https://jvz8.com/c/202927/369164 prime stocks
https://jvz3.com/c/202927/361015 content gorilla
https://jvz8.com/c/202927/366443 stock rush
https://jvz1.com/c/202927/373449 forrk
https://jvz3.com/c/202927/194909 keysearch
https://jvz4.com/c/202927/296191 gluten free
https://jvz1.com/c/202927/286851 diet fitness diabetes
https://jvz8.com/c/202927/213027 writing job
https://jvz6.com/c/202927/108695 postradamus
https://jvz1.com/c/202927/372094 stoodaio
https://jvz4.com/c/202927/358049 profile mate
https://jvz6.com/c/202927/279944 senuke
https://jvz8.com/c/202927/54245 asin
https://jvz8.com/c/202927/370227 appimize
https://jvz8.com/c/202927/376524 super backdrop
https://jvz6.com/c/202927/302715 audiencetoolkit
https://jvz1.com/c/202927/375487 4brandcommercial
https://jvz2.com/c/202927/375358 talkingfaces
https://jvz6.com/c/202927/375706 socifeed
https://jvz2.com/c/202927/184902 gaming jobs
https://jvz6.com/c/202927/88118 backlink indexer
https://jvz1.com/c/202927/376361 powrsuite
https://jvz3.com/c/202927/370472 tubeserp
https://jvz4.com/c/202927/343405 PR Rage
https://jvz6.com/c/202927/371547 design beast
https://jvz3.com/c/202927/376879 commission smasher
https://jvz2.com/c/202927/376925 MT4Code System
https://jvz6.com/c/202927/375959 viral dash
https://jvz1.com/c/202927/376527 coursova
https://jvz4.com/c/202927/144349 fanpage
https://jvz1.com/c/202927/376877 forex expert
https://jvz6.com/c/202927/374258 appointomatic
https://jvz2.com/c/202927/377003 woocommerce
https://jvz6.com/c/202927/377005 domainname marketing
https://jvz8.com/c/202927/376842 maxslides
https://jvz8.com/c/202927/376381 ada leadz
https://jvz2.com/c/202927/333637 eyeslick
https://jvz1.com/c/202927/376986 creaite contentcreator
https://jvz4.com/c/202927/376095 vidcentric
https://jvz1.com/c/202927/374965 studioninja
https://jvz6.com/c/202927/374934 marketingblocks
https://jvz3.com/c/202927/372682 clipsreel
https://jvz2.com/c/202927/372916 VideoEnginePro
https://jvz1.com/c/202927/144577 BarclaysForexExpert
https://jvz8.com/c/202927/370806 Clientfinda
https://jvz3.com/c/202927/375550 Talkingfaces
https://jvz1.com/c/202927/370769 IMSyndicator
https://jvz6.com/c/202927/283867 SqribbleEbook
https://jvz8.com/c/202927/376524 superbackdrop
https://jvz8.com/c/202927/376849 VirtualReel
https://jvz2.com/c/202927/369837 MarketPresso
https://jvz1.com/c/202927/342854 voiceBuddy
https://jvz6.com/c/202927/377211 tubeTargeter
https://jvz6.com/c/202927/377557 InstantWebsiteBundle
https://jvz6.com/c/202927/368736 soronity
https://jvz2.com/c/202927/337292 DFY Suite 3.0 Agency+ information
https://jvz8.com/c/202927/291061 VideoRobot Enterprise
https://jvz8.com/c/202927/327447 Klippyo Kreators
https://jvz8.com/c/202927/324615 ChatterPal Commercial
https://jvz8.com/c/202927/299907 WP GDPR Fix Elite Unltd Sites
https://jvz8.com/c/202927/328172 EngagerMate
https://jvz3.com/c/202927/342585 VidSnatcher Commercial
https://jvz3.com/c/202927/292919 myMailIt
https://jvz3.com/c/202927/320972 Storymate Luxury Edition
https://jvz2.com/c/202927/320466 iTraffic X – Platinum Edition
https://jvz2.com/c/202927/330783 Content Gorilla One-time
https://jvz2.com/c/202927/301402 Push Button Traffic 3.0 – Brand New
https://jvz2.com/c/202927/321987 SociCake Commercial
https://jvz2.com/c/202927/289944 The Internet Marketing Newsletter PLR Monthly Membership
https://jvz2.com/c/202927/297271 Designa Suite License
https://jvz2.com/c/202927/310335 XFUNNELS FE Commercial Drag-n-Drop Page Editor
https://jvz2.com/c/202927/291955 ShopABot
https://jvz2.com/c/202927/312692 Inboxr
https://jvz2.com/c/202927/343635 MediaCloudPro 2.0 – Agency Rights
https://jvz2.com/c/202927/353558 MyTrafficJacker 2.0 Pro+
https://jvz2.com/c/202927/365061 AIWA Commercial
https://jvz2.com/c/202927/357201 Toon Video Maker Premium
https://jvz2.com/c/202927/351754 Steven Alvey’s Signature Series 3rd Installment
https://jvz2.com/c/202927/344541 Fade To Black
https://jvz2.com/c/202927/290487 Adsense Machine
https://jvz2.com/c/202927/315596 Diddly Pay’s DLCM DFY Club
https://jvz2.com/c/202927/355249 CourseReel Professional
https://jvz2.com/c/202927/309649 SociJam System
https://jvz2.com/c/202927/263380 360Apps Certification Masterclass
https://jvz2.com/c/202927/359468 LocalAgencyBox
https://jvz2.com/c/202927/377557 Instant Website Bundle
https://jvz2.com/c/202927/377194 GMB Magic Content
https://jvz2.com/c/202927/376962 PlayerNeos VR