Zero-Covid policy is getting expensive for China, locks hanging on old factories, large scale layoffs
China There was a time when Dongguan used to be China's largest manufacturing base. In its heyday, Dongguan produced products sold by the largest companies in the world. But now the situation has changed. Companies are moving to other countries.
Staff Editor 
The Communist government of China has maintained the policy of zero-covid against corona infection. But manufacturing centers have to bear the brunt of this. A large number of private manufacturers have been forced to shut down the Pearl River Delta region in Dongguan, once considered China's manufacturing hub. Other companies have stopped work immediately with the hope of improving business in the future. The problem of trade deficit is not confined to Dongguan province. Rather, industry companies are also running in losses in other cities of China.
According to the Chinese news agency RFA, Dongguan-based Cooper Electronic announced last month that the company would be shutting down. Hong Kong-owned toymaker Dongguan Keshan Toys has also announced the closure of the company. At the same time, Dongguan Jingli Plastics and Electronics Co. will stop production on August 31 after laying off all its employees. Other private companies are planning to give their employees leave for six months as there has been a huge drop in new orders after the new policy of Corona.
According to businessmen, the company is going into loss due to non-receipt of orders. Payroll bills have become difficult to meet, so this is the only solution left. According to the RFA, such a situation has happened in Dongguan, China because the restrictions due to Corona are skyrocketing costs in China and companies with foreign investments are increasingly turning to Vietnam, Cambodia and other Southeast Asian countries. Huh.
Financial commentator Kai Shengkun pointed out that President Xi Jinping of the Communist government has adopted the policy of zero-Covid. Which means that the lockdown can be imposed in an instant without any prior notice. Mandatory screening and quarantine orders are in place for all persons. Due to such strict rules regarding Corona, the shipping cost is increasing, due to which there will be no benefit from exporting the products. This is the reason why companies are forced to close.
Financial commentator Kai Shengkun pointed out that there was a time when Dongguan used to be China's manufacturing base. In its heyday, Dongguan produced products sold by the largest companies in the world. During its heyday, Dongguan maintained high GDP growth for 20 years and accumulated considerable wealth. But with the passing of time, there are no major factories left in Dongguan, with the relocation of some industries and the constant influx of foreign capital.
