![A COVID lockdown in Shenzhen, China's 'Silicon Valley', could cause knots in the supply chain for U.S. companies like Apple and fuel higher inflation.](https://san.com/wp-content/uploads/2022/03/Shenzhen-In-Lockdown-COVER.jpg?w=1919)
SIMONE DEL ROSARIO: A MAJOR COVID LOCKDOWN IN CHINA’S TECH HUB COULD CAUSE KNOTS IN THE SUPPLY CHAIN FOR U-S COMPANIES LIKE APPLE, AND FUEL HIGHER INFLATION.
RESIDENTS OF SHENZHEN – JUST NORTH OF HONG KONG – HAVE BEEN TOLD TO LOCKDOWN FOR AT LEAST A WEEK OVER A COVID OUTBREAK THERE. THE CITY HAS REPORTED MORE THAN 400 CASES SINCE LATE FEBRUARY IN A COUNTRY WITH A ZERO-COVID POLICY.
ALONG WITH BEING HOME TO MORE THAN 17 MILLION RESIDENTS – SHENZHEN IS LIKE THE SILICON VALLEY OF CHINA – THE H-Q OF MAJOR CHINESE TECH COMPANIES LIKE HUAWEI AND TENCENT, AND HOME TO A VITAL MANUFACTURING FACILITY FOR FOXCONN – THE MAIN CHINESE MAKER OF THE IPHONE AND OTHER APPLE PRODUCTS.
FOXCONN CONFIRMED OPERATIONS ACROSS ITS SHENZHEN SITES ARE SHUT DOWN…AS THE CITY – RESEMBLES A GHOST TOWN – IN THIS VIDEO TAKEN MONDAY.
ADULTS THERE WILL NEED TO TAKE THREE P-C-R TESTS IN THE COMING DAYS.
IT’S NOT JUST COMPANY EXPOSURE TO THE REGION, LIKE APPLE’S, THAT WILL IMPACT THE GLOBAL SUPPLY CHAIN.
SHENZHEN ALSO HAS ONE OF THE WORLD’S LARGEST PORTS. AN OUTBREAK THERE A YEAR AGO CAUSED A SURGE IN GLOBAL SHIPPING RATES, RAISING PRICES ON GOODS WHEN WE’RE ALREADY SEEING THE HIGHEST INFLATION IN 40 YEARS.
IN NEW YORK FOR JUST BUSINESS I’M SIMONE DEL ROSARIO.