New COVID cases in China

As of July 11, more than 30 million people across China have again been under some form of movement restrictions as a new flare-up of COVID-19 cases spreads across the country. Authorities, however, have so far stayed away from strict lockdowns in the most critical economic regions, including Shanghai and Shenzhen. In the first 10 days of July, an additional 1,830 new COVID-19 cases were detected across China, triggering new lockdowns from Wuxi, a manufacturing hub west of Shanghai, to Wugang, a city in the steelmaking province of Henan, and Xi’an, which houses several semiconductor manufacturing plants.

Mass testing is being conducted in various provinces in eastern China, with more than 300 new cases emerging daily.

China’s COVID-19 defense relies on mass testing, snap lockdowns and border curbs which will likely continue to cause ad-hoc disruption to manufacturing and logistics operations in the medium term.

Manufacturers in China rely heavily on the discretion of local authorities to resume production, so clients should monitor ongoing COVID-19 developments to understand in which regions delivery schedules may be delayed and how new regulations will impact production.

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