The largest electronics wholesale market in the world, located in the Huaqiangbei area, has been shut down by local authorities in Shenzhen, southern China, due to new COVID-19 cases on the rise, according to a report by SCMP.
The shutdown has prompted concerns in local supply chains, as the area serves as an important technological hub in China.
Closed Until Thursday
On Monday morning, Aug. 29, business owners in the neighborhood discovered a sign stating that the area would be closed until Thursday. One of the largest operators in the district, Huaqiang Electronics World, has announced that all tenants must work from home during this time and undergo daily nucleic acid tests.
Huaqiangbei's business operations have been suspended as part of a bigger set of actions the Shenzhen government announced on Monday. These measures also include the lockdown of five additional areas in the economic centers of Futian and Luohu.
All businesses in the impacted areas must close, with the exception of those that are deemed necessary, such as pharmacies, supermarkets, and dining establishments.
Additionally, the Shenzhen government mandated the permanent closure of 24 metro stations on Monday, the majority of which were situated in Futian and Luohu, according to the metro operator.
Read also : Shenzhen's Subsidy Program to Boost Consumption, Excludes Apple, Samsung, and Xiaomi on the List
Supply Chain Concerns
As Beijing strives to compromise between its zero-Covid policy and maintaining economic activity, the city of more than 17 million people managed to limit a Covid-19 outbreak in March following a week-long lockdown and has been hailed as an example of effective governance, as per SMCP.
The most recent actions, however, highlight the difficulty that China is facing in balancing its economic goals and health policies.
Shenzhen has been performing targeted lockdowns of residential complexes and routine mass testing ever since it observed an increase in new cases in mid-August and reported 11 new cases on Sunday.
Given that the hi-tech sector was expected to contribute 20% of Shenzhen's gross domestic product in 2020, the temporary closure of Huaqiangbei increases supply chain concerns.
During the citywide lockdown in March, business at Huaqiangbei was halted for days. In June, a few of the neighborhood's shopping centers and business buildings were placed on partial lockdown.
Related Article : Shenzhen Detects New COVID-19 Cases, Residents Required to Take Swab Test Every 48 Hours
This article is owned by Tech Times
Written by Joaquin Victor Tacla
