SHANGHAI, China – Multiple companies have suspended operations in one of China’s biggest and busiest manufacturing hubs as authorities double down to contain a COVID-19 outbreak, halting some production of goods from batteries and clothing to textile dyes and plastics.
The three cities accounted for more than 50% of the province’s economic output of around 6.46 trillion yuan last year. Many of Zhejiang’s goods are for export. The orders cover all companies in the affected areas, but only listed firms are required to disclose any impact on their business. Zhejiang Runtu said all its units in the Zhejiang Shangyu Economic Development Zone , which accounts for 95% of its revenue, had been halted since December 9 and it expected a negative impact on its fourth-quarter results.
Major industries in Zhenhai, which has a port, include manufacturing of precision machinery and chemicals. The district also hosts factories with investments by over 700 foreign companies including LG Electronics and Toshiba, according to the Zhenhai government’s website.