- Kyle Chua
Some Tech Supply Chains at Risk As Shenzhen’s Huaqiangbei Goes Into COVID Lockdown
Huaqiangbei district, the world's largest electronics wholesale market in the southern Chinese city of Shenzhen, has been ordered to temporarily shut down as local authorities combat a new COVID-19 outbreak.
The area, which many foreign entrepreneurs visit to source components for devices, was closed on Monday, 29 August through Thursday, 2 September, as the South China Morning Post reports.
While it's not entirely clear what specific tech segments are affected by the closure, some supply chains, both local and international, are expected to be put at risk, given how a lot of grey market and third-party products and components are sourced from the Huaqiangbei. The district accounted for 20% of Shenzhen’s gross domestic product in 2020.
Many foreign investors also visit Huaqiangbei to have goods manufactured by nearby factories.
All shops in the popular Chinese tech hub were ordered to close, except essential businesses like supermarkets, restaurants and pharmacies. Restaurants can only accommodate takeaways, with all dining services being suspended. Authorities also ordered the closure of metro stations, the majority of which are located in the districts of Futian and Luohu.
Shenzhen, which has a population of close to 18 million people, reported on Monday nine symptomatic and two asymptomatic cases from testing the previous day. This prompted authorities to initiate new lockdown measures to balance its interests in minimising cases while maintaining economic activity.
This isn't the first time business in Huaqiangbei was suspended. The district was previously ordered to close during the citywide lockdown in March. Then in June, individual shopping centres and office buildings were also placed under partial lockdowns.
China is one of the last countries in the world that’s still adopting a zero-tolerance approach against COVID-19, so much so that such measures like regular testing and extensive surveillance have become part of the “new normal” for the country’s citizens. Other Asian countries like Singapore, in contrast, have since opened up and started living with COVID-19.
Huaqiangbei district in the southern Chinese city of Shenzhen has been ordered to temporarily shut down as local authorities combat a new COVID-19 outbreak.
The area, which many foreign entrepreneurs visit to source components for devices, was closed on Monday, 29 August through Thursday, 2 September.
Some supply chains, both local and international, are expected to be put at risk, given how a lot of grey market and third-party products and components are sourced from the Huaqiangbei.