New Delhi: China's efforts to curb its largest Covid-19 outbreak since the pandemic broke out has forced several companies including Apple supplier Foxconn, automakers Toyota and Volkswagen to suspend some operations.


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China has now reported more local symptomatic Covid-19 cases so far this year than it recorded in all of 2021.


Multiple Chinese provinces and cities have tightened restrictions in line with Beijing's 'zero-tolerance' goal of suppressing contagion as quickly as possible, among them the southern Chinese tech hub of Shenzhen.


Shenzhen, which is known as China's Silicon Valley, is carrying out mass testing after dozens of new local cases were recorded last week. Officials have suspended public transport and have urged people to work at home this week as much as possible.


Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said its Shenzhen operations would be suspended until further notice, adding it would deploy backup plants to reduce disruption.


Other Taiwan companies which said they had suspended Shenzhen operations included chip substrate and printed circuit board maker Unimicron Technology Corp, which also supplies Apple and Intel, and flexible printed circuit board maker Sunflex Technology Co Ltd.



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Other cities have also enacted restrictions to varying extents. There is a lockdown in Changchun city, the capital of northeastern Jilin province, and schools have been shut in the financial hub of Shanghai while public transport has been suspended in the manufacturing centre of Dongguan.


Toyota had said last week that its joint venture with China's FAW Group had also suspended production in Changchun. Volkswagen, which also has a joint venture with FAW, had also suspended production at its vehicle and component plants from Monday to Wednesday last week. 


The coronavirus-induced lockdowns have now raised concerns over global supply chain disruptions, including in India. If the lockdowns and restrictions continue in China, various pharma, electronics, steel and automobile sectors in India are likely to be hit due to shortfalls in supplies of components and intermediate materials. 


The restrictions also have wider potential ramifications which have come at a time when the global economy is under pressure from the ongoing Russia-Ukraine war with surging oil prices and weakening consumer demand.


(With agency inputs)


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