Concerns Over COVID-19... Suspension of Services at 24 Stations in Shenzhen
[Asia Economy Reporter Lee Ji-eun] Shenzhen, the center of China's information technology (IT) industry, fully closed 'Huaqiangbei,' the world's largest electronics market, on the 28th to prevent the spread of COVID-19. Concerns are rising that COVID-19 could spread again in Shenzhen, which was locked down once in March.
Economic media CNBC reported on the 29th (local time) that the Huaqiangbei electronics market has been closed since the previous day, with entry completely prohibited until the 2nd of next month. Huaqiangbei is China's largest electronics market with an annual transaction volume of 200 billion yuan (approximately 38.92 trillion won), housing about 40,000 stores and employing 220,000 workers.
Eleven confirmed cases were reported at Huaqiangbei the day before, two of whom were classified as asymptomatic carriers. Lockdown measures were also imposed on Wansha Village, where low-wage workers working near Huaqiangbei reside.
Shenzhen's quarantine authorities suspended operations at 24 subway stations in Futian District and Luohu District, where the government offices are located. Futian District will also suspend operations of commercial facilities such as cinemas and karaoke rooms until the 2nd of next month.
The reason for these measures is the recent resurgence of COVID-19 in the Shenzhen area. In March, Shenzhen locked down the city for a week after 75 confirmed cases and 11 asymptomatic infections were reported.
There were no infections for three months afterward, but since June, confirmed COVID-19 cases have been occurring mainly in Futian District, Luohu District, and nearby Hong Kong. In response, Shenzhen has tightened quarantine measures, requiring a negative COVID-19 test certificate issued within 48 hours to enter public facilities such as bus terminals.
Shenzhen is China's 'technology hub,' home to giant IT companies like Huawei and Tencent. In March, the Shenzhen manufacturing plant of Foxconn, the largest producer of Apple iPhones, suspended operations, causing global supply chain disruptions. At that time, Shenzhen lifted the lockdown in some areas after four days, fearing significant damage to businesses.
Hong Kong's South China Morning Post (SCMP) expressed concerns that Shenzhen's current lockdown could cause bottlenecks in the global supply chain. SCMP stated, "The high-tech industry accounts for as much as 20% of Shenzhen's gross domestic product (GDP)," adding, "The temporary closure of Huaqiangbei is adding new risks to the supply chain."
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