The Hong Kong factories caught in limbo in mainland China: businesses struggle as flow of goods and people halted amid Dongguan’s Covid-19 lockdown
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Thousands of Hong Kong factories in a Dongguan town in Guangdong have been caught in limbo by a lockdown in the district, with the flow of people and goods stalled amid a surge in Covid-19 infections.
Danny Lau Tat-pong, honorary chairman of the Hong Kong Small and Medium Enterprises Association, told the Post his two factories in Dongguan’s Dalang town might be forced to halt production, as the lockdown had prevented goods vehicles from entering or leaving town.
Mainland Chinese authorities had imposed the measures as four more Covid-19 cases were reported in Dongguan on Wednesday, taking the number of infections detected since Tuesday to eight.
Lau, managing director of curtain wall frame manufacturer Kam Pin Industrial (HK) Limited, which employs some 200 workers in Dalang, said his business would be in serious trouble if the lockdown continued for a longer period.
“Since Tuesday, the whole town has been subject to a lockdown while its 300,000 residents need to undergo compulsory testing every day with vehicles being restricted from coming in or going out,” he said.
“This has created a very bad situation for us and other factories in this town. On one hand we can’t deliver goods to our clients who may pursue damages from us if they suffer losses.”
Lau said that without getting new supplies for raw materials, his factories’ stock reserves could only last a few days, adding: “If this lockdown continues, we’ll be forced to suspend our production and staff will be without work.”
