China locks down city containing one of world's busiest ports, could impact supply chain

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China locks down city containing one of world's busiest ports, could impact supply chain
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Ningbo is currently experiencing a small but impactful COVID surge out of a warehouse with ties to the port.

The Chinese industrial city of Ningbo has been shut down due to COVID-19 and the lockdown has its port continuing to be backed up.

Although there are currently no direct cases currently reported involving port employees, many of those infected work at a workshop owned by Shenzhou International, which frequently ships products out of the port. More than 5,300 people work at the port. The biggest city in China's latest lockdowns is Xi'an, a metropolis of 13 million people in the west. It is less significant as a manufacturer than Wuhan, the central city that shut down in 2020 after the first coronavirus cases were spotted there. But Xi'an has factories that make processor chips for smartphones, auto parts and other goods for global and Chinese brands.

Xi'an accounts for 42 percent of Samsung's NAND production and 15 percent of global supply, according to Shelly Jang of Fitch Ratings. Samsung makes about one-third of such chips. The ruling Communist Party's intensive controls on travel and business under a"zero-COVID strategy" that aims to keep the virus out of China have held numbers of new infections relatively low.

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