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China Reimposes COVID Lockdown... What About Samsung and SK?

One-Week Intensive Control in Xi'an, Anhui Province on High Alert for Cluster Infections
Prolonged Situation Could Harm Korean Companies in Semiconductors and More

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Xi'an, a city with a population of 13 million in Shanxi Province, China, has been locked down again. Xi'an was locked down for about a month last December when COVID-19 infections surged. Xi'an is home to Samsung Electronics' semiconductor factory, and if the lockdown prolongs, production disruptions and other damages are feared. Wuxi in Jiangsu Province, where SK Hynix's factory is located, is also currently experiencing an increase in COVID-19 cases.

China Reimposes COVID Lockdown... What About Samsung and SK?


According to Chinese media including Xinhua News Agency on the 6th, the health authorities of Xi'an City, Shanxi Province, decided to implement temporary control measures across the city for one week starting from midnight that day.


Accordingly, all large-scale meetings (including religious activities) and various offline events will be completely suspended for one week. Also, multi-use facilities such as cinemas, libraries, museums, and gyms will be closed for one week. Dining inside restaurants is also prohibited. Elementary, middle, and high schools, as well as kindergartens in the city, started their summer vacation from that day.


Chinese media, citing Xi'an health authorities' announcement, reported that a total of 18 confirmed cases were identified from the 2nd to the 4th, among which 3 were community infections. They also reported that the Omicron BA.5.2 variant, whose transmission route could not be confirmed, was detected.


A bigger problem than Xi'an is Anhui Province. From the 26th of last month to the 3rd of this month, a total of 858 infections were confirmed in Anhui Province.


In particular, a cluster infection was confirmed in Susong County, Anhui Province, causing Chinese health authorities to be on high alert. Susong County is adjacent to Jiangsu Province (Wuxi) and Zhejiang Province (Yiwu), which are industrial and commercial areas. There is a high possibility of re-spreading to nearby large cities. Wuxi is where SK Hynix's semiconductor factory is located.


In fact, Wuxi health authorities announced that among the 7 infection cases confirmed on the 29th of last month, 2 were migrant workers from Susong County, and the remaining 5 were secondary infections. Chinese health authorities estimate that the current COVID-19 spread in Anhui Province has affected 12 cities around the Yangtze River, including Shanghai.


In Yanqing District, Beijing, the capital, infections were confirmed just three days after the relaxation of quarantine policies. Three confirmed cases were identified the previous day, among which one was a community infection with an unknown transmission route. Beijing health authorities designated two high-risk areas and three medium- and low-risk areas each within Yanqing District and quarantined 362 close contacts.


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