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Zero Covid Brings Guangdong Factory Hub to its Knees – RFA

Many private companies in Dongguan have been forced to shut down, lay off staff, or suspend production because zero-Covid restrictions had a severe impact on their operations

Guangzhou have locked down over half the city's population while they undergo mass testing.
A medic takes a swab from a boy during mass testing for the coronavirus at a stadium in Guangzhou in southern Guangdong province, May 30, 2021. File CNS photo via Reuters.


A large number of private companies in Dongguan, a famous manufacturing hub in Guangdong province, have been forced to shut down, lay off staff, or suspend production because zero-Covid measures had had a severe impact on their operations, according to a report by Radio Free Asia, which said Cooper Electronics, Dongguan Krishna Toys and Dongguan Jieying Precision Hardware Products would close this month, while Dongguan Jingli Plastics and Electronics had laid off staff and would suspend work on August 31.

One business said they had suffered a big slump in orders amid rising shipping costs, while companies with foreign backers were relocating to Southeast Asia as costs continue to go up in China, the report said, which quoted a financial analyst who said the lack of financial support had opened the door for the state to take over private firms with good technology and equipment.

Read the full report: Radio Free Asia.




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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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