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China locks down 5.5 million cities… Stop all factories and ports

Due to China’s strong ‘zero corona’ prevention policy, global companies such as Samsung Electronics, Toyota and Volkswagen are experiencing production disruptions. Delays in inland transportation to and from major ports in China raise concerns that it could again impact the global supply chain.

The Wall Street Journal (WSJ) reported on the 11th (local time) that “China has maintained a zero tolerance policy for COVID-19, which is causing disruptions in production and supply chains.” did.

The WSJ reported that Samsung Electronics, Toyota, Volkswagen, Nike, and Adidas, which have factories in China, are experiencing production disruptions. Samsung Electronics’ semiconductor factory in Xi’an, Shaanxi Province, which was put under lockdown on the 23rd of last month, is known to have a shortage of production manpower. A source told the WSJ that output at the plant could be slightly reduced in the short term. Micron Technology, which has a factory in Xi’an, also said that due to the lockdown measures, DRAM production was affected due to a decrease in the number of workers at the factory. Toyota halted the operation of its factories in Tianjin on the 10th and 11th, where Omicron, a COVID-19 mutant virus, was detected.

As more than 24 confirmed cases of COVID-19 have been confirmed near Ningbo and Zhoushan Port, the third largest port in the world, truck operations and warehouse operations are being restricted.

Supply chain consulting firm Russell Group estimates that a one-week delay in essential trade at the Port of Ningbo will affect trade volume worth $4 billion (about 4.8 trillion won). The port of Ningbo was closed for two weeks in August of last year due to a confirmed case of COVID-19.

In China, three weeks before the Beijing Winter Olympics, the spread of Corona 19 is not slowing down. China’s quarantine authorities imposed a lockdown on the 10th in Anyang, Henan Province, a city with a population of 5.5 million, following Xi’an and Yuzhou in Henan Province. On that day, Anyang city quarantine authorities instructed all residents to be tested for COVID-19 and informed them that they could not go out except for some urgent reasons, such as quarantine.

On the 11th, the state-run Global Times reported that 26 new cases of COVID-19 were confirmed in Anyang City from the 9th to the 10th, and two of them were omicron mutation infections. In Tianjin, where all 15 million residents were tested for COVID-19, there were 31 new confirmed cases as of the afternoon of the 10th.

Meanwhile, in the United States, as the spread of COVID-19 does not subside, companies are delaying the time of returning to their offices one after another. The WSJ reported, “Companies are no longer trying to predict when they will return to the office as the spread of COVID-19 continues due to the appearance of various mutations.”

[신혜림 기자 / 이유진 기자]
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