Shenzhen Implements “Closed‑Loop” Measures Amid Rising Covid Cases
What the city wants from big businesses
According to a leaked Shenzhen government memo, a dozen megacorp giants—Foxconn, BYD, Huawei, ZTE and others—have been told to adopt a “closed‑loop” system. The idea is simple: workers stay in a single location for work, minimize commuting, and keep an eye on infection risk.
CNOOC’s temporary shutdown
- Building closed for seven days until July 31.
- Employees work from home with daily Covid‑19 testing.
Companies’ reactions
- Foxconn says operations are normal and will follow government guidelines.
- BYD, ZTE and DJI refused to comment.
- Huawei had not responded when asked.
Pandemic context
Shenzhen, home to nearly 18 million people, reported 21 new locally transmitted cases this weekend—a slight uptick that keeps the city on high alert. Authorities have sealed residential complexes at higher risk, and any office, restaurant or public area now needs proof of a Covid‑19 test within the past 24 hours.
History looks back: Shanghai’s closed‑loop experiments
During April‑May 2023, Shanghai tried keeping factories open under a “closed‑loop” approach. Workers lived and worked on the site, but the arrangement caused logistical headaches for many businesses.
March’s “slow‑living” week
In March, Shenzhen implemented a week of “slow living.” Residents stayed mostly inside, underwent multiple rounds of testing, and only one household member was allowed out every few days to buy necessities.
Note: This article pulls together information from a leaked city memo, Reuters monitoring, and earlier Bloomberg reports. No official confirmation has yet been received.
