China made it necessary for some of the largest companies in Shenzhen to operate in a “closed loop” system for seven consecutive days after another Covid-19 outbreak.
The city reached out to over 100 companies, including BYD automaker, ZTE networking giants Huawei Technologies, ZTE and DJI drone maker. China has ordered them to restrict work to employees who live in closed loops and have no contact with outsiders. To reduce the spread of the disease, authorities have asked companies to cut down on the number of people who interact with non-production workers and factories floors.
Foxconn spokesperson said that facilities in Shenzhen continue to operate as usual following the changes. Representatives from ZTE and DJI were unable to comment. Bloomberg inquires have been answered by representatives from Huawei, CNOOC, and BYD.
Academics and economists have already called on Beijing to relax Covid-19 restrictions. These are some of the most severe in the world. These restrictions have weakened the economy of the country and provoked mass protests.