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Lockdown Fatigue: Chinese Companies Moving Supply Chains out of China

BY FRANCES MARTEL

 

The Chinese technology company Xiaomi announced the delivery of its first made-in-Vietnam phone handsets this week, the South China Morning Post revealed on Thursday, the latest Chinese company to move manufacturing power out of its home country in light of the Communist Party’s seemingly endless Chinese coronavirus lockdowns.

Reporting on Xiaomi’s partial divorce from Chinese supply chains, China’s state-run Global Times noted that several other Chinese companies like appliance maker TCL have also sought to escape the coronavirus lockdown chaos at home by moving manufacturing into neighboring Vietnam. Even prior to the pandemic, however, companies like Huawei, China’s largest telecommunications company, have sought more business in Vietnam as a safeguard against the arbitrary behavior of the Chinese Communist Party.

The trend of extracting supply chains out of China may soon escalate as Beijing has implemented several new Chinese coronavirus house arrest provisions this week in Shanghai, Macau, and Xi’an. Beijing itself, which avoided a total lockdown in the first half of the year despite early signs that dictator Xi Jinping would impose one, announced the nation’s first-ever vaccine mandate set to begin on July 11.

Xi has personally insisted in remarks published by the regime that the government neither abandon lockdown policies nor question them in any way.

 

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