Chengdu extends lockdown indefinitely

Chinese city Chengdu has extended its lockdown indefinitely, after the city reported 116 new local cases on Thursday, falling from 121 the previous day.

The lockdown was supposed to end on Wednesday, however the Sichuan Province capital entered a long-term shutdown across most of its districts as it moved to eradicate all cases in line with its zero-Covid policy.

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The country’s radical zero-tolerance approach to the virus has seen China shut down major production hubs from Shanghai to Shenzhen, sparking market volatility in commodities prices from oil to copper on demand fears.

The 21 million population were informed of the extended lockdown as local government officials said “there are still risks of social spread in some areas.”

Currently, 16 out of Chengdu’s 23 districts remain under lockdown. Residents will be tested daily until the city has been cleared as Covid-free, with no estimated date for a return to regular routines.

Production fears extended to the tech sector, as Chengdu hosts a large factory for Apple suppliers Foxconn, which produces MacBooks and Ipads, alongside supplier Jabil, which produces MacBook components.

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Chengdu locked down last week after an outbreak of Covid cases hit the region. The shutdown marks the most significant wave of restrictions since Shanghai entered lockdown earlier this year.

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