China's Chengdu under lockdown as fresh bout of Covid hits 41 cities forming 32% GDP

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One of China's biggest cities, Chengdu, announced a lockdown of its 21.2 million residents as it launched four days of citywide Covid-19 testing, as some of country's most populous and economically important urban centres battle outbreaks.

Chengdu, capital of Sichuan province, will be the biggest city to shut down since Shanghai’s two-month lockdown earlier this year.

Also Read | China's Chengdu to conduct mass COVID testing, lockdowns as cases climb

The city, which accounts for about 1.7 percent of China’s gross domestic product, is home to technology companies and automakers, including Toyota Motor Corp and VW China.

According to Capital Economics, 41 cities, responsible for 32 percent of China’s GDP, are currently in the midst of Covid outbreaks – the highest number since April, reported Guardian.

“For now, the resulting disruption appears modest, but the threat of damaging lockdowns is growing,” said Julian Evans-Pritchard, senior China economist at Capital Economics. “And even if they are avoided, we expect growth to remain subdued going forward,” she added.

Chengdu has a population of more than 21.2 million.

According to a government release, in 2021, Sichuan's GDP was 5,385.08 billion yuan, making it the first province with a GDP of more than 5 trillion yuan in western China and the sixth in China.

According to a report by CNBC TV18, industrial firms engaged in important manufacturing and able to manage on closed campuses were exempted from work-from-home requirements.

Chengdu is also a popular tourist destination, famed for its giant panda sanctuary.

But, flights to and from Chengdu were dramatically cut back, according to Flight Master data. At 10 a.m. local time (02:00 GMT) on Thursday, it showed 398 flights were cancelled at Shuangliu Airport in Chengdu, with a cancellation rate of 62 percent. At Chengdu's Tianfu Airport, 79 per cent, or 725 flights, were cancelled.

Foxconn Technology Group, the world’s largest assembler of Apple Inc.’s iPhones and other devices, makes iPads in the area. Intel Corp. and other foreign firms also have facilities in the city, cited Bloomberg.

Chengdu will conduct mass Covid-19 testing from Thursday and will go on till  Sunday, its city government said on today.