Ruili port in Southwest China's Yunnan Province links the country with Myanmar. Photo: IC

A recent outbreak of the novel coronavirus in Ruili, Southwest China's Yunnan Province, has led to a lockdown in the city that borders Myanmar, putting the local diamond business worth 10 billion yuan ($1.5 billion) at risk, according to media reports on Tuesday.

After a suspected case of COVID-19 was reported in Ruili over the weekend and two new imported cases from Myanmar on Monday, officials in Yunnan on Monday announced "wartime status" in eight prefectures and 25 counties that are close to the border with Myanmar. The entire city of Ruili was put under a lockdown that is expected to last at least a week, while health officials conduct widespread testing.

The outbreak was caused by illegal crossings from Myanmar, officials said. 

The lockdown instantly pushed up prices for meat and vegetables, as local residents rushed to stock up on food. The price of pork rose to 60 yuan per 0.5 kilograms and the price of beef rose to 100 yuan per 0.5 kilograms, according to domestic financial news magazine Caijin. Shelves were emptied overnight and food delivery services were shut down overnight following the lockdown.

While Ruili is a small city of roughly 200,000 residents, the city is a major port for diamond imports from Myanmar, which is among the world's largest diamond producers. Given its close proximity to Myanmar and favorable customs arrangements for border trade, Ruili has become a leading market for the diamond business, with total transactions reaching 10 billion yuan in 2019, Caijin reported.

The burgeoning diamond business also give birth to a rising livestreaming sector in the city, where some 60,000 people work in livestreaming to promote diamond sales, according to the report.

But as part of the lockdown and efforts to contain the outbreak, officials in Ruili on Monday also ordered all livestream events and business activities to be suspended as workers are required to take nucleic acid tests, putting a halt to the industry.