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China’s Shenzhen Orders ‘Closed-Loop’ Working to Curb Covid

The tech hub is home to major technology companies like iPhone maker Foxconn, BYD, Huawei and ZTE

Shenzhen Covid curbs
Residents line up to get tested for the coronavirus disease (COVID-19) at a nucleic acid testing site in Shenzhen, Guangdong province, China July 22, 2022. Photo: Reuters


iPhone maker Foxconn is among 100 firms in Shenzhen ordered by city authorities to set up “closed-loop” work systems in a bid to keep a lid on the swelling number of Covid cases in the tech hub.

According to a document circulating online on Monday the order, attributed to Shenzhen’s department for industry and information, said that major companies, including BYD Co, Huawei Technologies Co and ZTE Corp, should minimise entry and exit into the so-called loops.

While Reuters could not independently verify the document, a notice at a Shenzhen office of oil giant CNOOC Ltd said that the building would be closed for seven days until July 31, with staff to work from home and continue with daily Covid testing.


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A CNOOC spokesperson did not have an immediate comment and the Shenzhen government did not respond to a request for comment.

Taiwan-based Foxconn said that operations at its Shenzhen facilities were “normal” and that it would follow government guidelines to ensure safe production.

Huawei did not immediately respond to requests for comment, while BYD, ZTE and Shenzhen-based dronemaker DJI Technology Co declined to comment.

During its lockdown in April and May, the Chinese economic hub of Shanghai tried to keep factories open under “closed loop” operations, where staff live and work on-site, but businesses said the arrangements posed numerous difficulties.

A technology hub of nearly 18 million people, Shenzhen reported 21 new locally transmitted Covid-19 infections on Sunday, up from 19 a day earlier.


Beijing’s ‘Dynamic Zero’ Policy

While case numbers are low by global standards, a slow uptick over the last week has pushed local authorities to step up vigilance to comply with the central government’s “dynamic zero” policy of containing outbreaks as soon as they emerge.

Shenzhen has not ordered blanket closure of businesses or tough curbs on people’s movements but has sealed residential compounds and buildings identified as being at higher risk. 

Many offices, restaurants and public spaces required proof of a COVID test from within 24-hours as of Monday.

During an outbreak in March, Shenzhen adopted one week of so-called “slow living”, when residents underwent multiple rounds of testing and largely stayed at home, with one member of each household allowed out every few days to buy necessities.


  • Reuters with additional editing by Sean O’Meara


Read more:

China’s Shenzhen Scrambles Resources to Check Covid’s Spread

Clouds Loom Over China’s Future in ‘Miracle City’ Shenzhen

Foxconn ‘Basically’ Back to Normal Operations in Shenzhen



Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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