Lockdown in Xi’an: Production of German companies restricted

The northern Chinese metropolis of Xi’an has been in a tough lockdown for more than a week after a major corona outbreak. German companies are also feeling this. Production comes to a standstill.

Xi’an, a city of millions, seems almost empty. Online videos show trucks and people in protective suits spraying a liquid on the streets to disinfect the city. The 13 million residents of the metropolitan region are not allowed to leave their homes without the approval of the authorities.

Some companies have set up camp beds for their employees in their factories in order to keep production going. The 20 German companies in the city, including Bosch and Siemens, are also affected by the lockdown.

Not everyone lives near the factory

Jens Hildebrandt from the German Chamber of Commerce Abroad in Beijing explains the situation: “You have to imagine that the employees don’t all live near the factory and it cannot be guaranteed that they can come in again and again. That’s why it is logistically quite a bit laborious act – therefore just camp beds so that production can be maintained. “

But even that is only a stopgap solution. Production is restricted. According to Hildebrandt, it is particularly difficult that the parts required for production cannot be supplied. “That’s a big problem, the logistics are difficult at the moment. Getting trucks in and out of Xi’an is very complicated. Therefore, the effect on the supply chain can definitely be felt at German companies.”

Important location for the semiconductor industry

Xi’an is also an important location for the semiconductor industry. Samsung produces special chips for smartphones here and is restricting its production due to the lockdown. The US chip manufacturer Micron is also warning of production interruptions.

“The semiconductor crisis has been dragging on for a while, and it is exacerbated again by such incidents. The German automotive industry in particular is dependent on semiconductors, so it will have a kind of down-effect on the German economy Somehow the end will feel. But the local German companies are now not dependent on Samsung semiconductors, for example, “says Hildebrandt.

However, he does not believe that the lockdown in Xi’an will have as much economic impact as the lockdown at the beginning of the pandemic in Wuhan.

Lockdown usually two to four weeks

Both the authorities and the companies in China have learned from the pandemic over the past two years and have adjusted to such situations.

It is not yet clear when the lockdown will end. According to the experience of the German Chamber of Commerce Abroad, lockdowns have always taken around two to four weeks before companies were able to start operations again.