Thursday, November 17, 2022

China: Sharp rise in Covid-19 cases in manufacturing hubs Guangzhou and Zhengzhou

By Tim Gamble

China is reporting a sharp rise in Covid-19 cases, especially in the manufacturing hubs of Guangzhou and Zhengzhou. This is not good news for the world's supply chains.

Guangzhou (population 18 million?) is currently reporting about 3,500 new locally transmitted cases a day. Schools have been closed in 8 of the 11 city school districts, with classes being moved back online. A large portion of the city's population has been ordered to stay home, and non-essential businesses were told to close. Guangzhou is a mega-port city, and is a major industrial center for automobile assembly, biotechnology, and heavy industry. It is also a major producer and exporter of beer (Zhujiang brand) and porcelain products. 

Zhengzhou (population 9 million?) is currently reporting about 2,600 new locally transmitted cases a day. The city's main industry is textiles, but other manufactured items include tractors, locomotives, fertilizer, agricultural machinery, electrical equipment, and processed meats. Zhengzhou sits in the middle of a major mineral and coal mining region, with many mining companies headquartered there. The city is also home to Apple supplier, Foxconn. The Foxconn plant is now shut down, along with the city's other nonessential businesses. 

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