Status: 11/02/2022 12:47 p.m
After a corona outbreak in the world’s largest iPhone factory in central China’s Zhengzhou, authorities cordoned off the area around the factory. Apple is now threatened with restrictions on the production of the smartphone.
Chinese authorities have imposed corona restrictions on an industrial area in the central China city of Zhengzhou, which are set to remain in effect until November 9. They were reacting to a corona outbreak in the world’s largest iPhone factory, which is operated by the Taiwanese manufacturer Foxconn, the most important contract manufacturer of the Californian Apple group. The area is now to be “statically managed” for seven days.
People are “not allowed to leave their homes – except to take corona tests and receive emergency medical treatment,” said representatives of the industrial area. The industrial zone’s more than 600,000 residents must be tested for the coronavirus daily, the local government said, warning that it would take “firm” action against violators.
Foxconn factory operating in ‘pandemic mode’
The Apple supplier Foxconn produces 70 percent of all iPhones worldwide. Around 200,000 workers are employed at the Zhengzhou site alone. It is estimated that production in Zhengzhou could slump by up to 30 percent. Apple shares have come under pressure over the past few days in light of reports from China.
The US tech group initially made no comment. According to Foxconn, the plant continues to operate in a “pandemic mode” in which workers stay overnight and spend their free time on site. The Taiwanese company announced a “long fight” against the corona virus, but did not provide any information on the number of infected and quarantined employees.
Apple supplier offers employees bonuses
Over the weekend, pictures appeared on Chinese online networks that are said to show Foxconn employees trying to get to their home towns on foot across roads and fields. People complained about the poor working conditions on the Internet. The authenticity of the videos could not initially be checked.
Yesterday Foxconn offered its employees bonuses to encourage them to stay. The company said on the WeChat network that it would pay out 400 yuan ($60) per day of attendance.
Speculations about a U-turn in politics
China’s economy is suffering because Beijing does not want to move away from its strict zero-Covid policy. The aim of this is to nip any outbreak of the virus in the bud. President Xi Jinping recently announced that he wanted to stick to the previous corona policy. 2,755 new cases were reported in China yesterday – the most since mid-August.
Car company Nio stops production in Hefei
Speculations about a possible departure from the previous corona policy had recently caused price gains on the Chinese stock exchanges. The leading index in Hong Kong rose by 2.5 percent in the middle of the week, after having risen by more than five percent the day before.
Other large companies in China have also been severely affected by the recent lockdowns in the country. The electric car manufacturer Nio suspended production at its plants in the provincial capital of Hefei in eastern China. The restaurant chain Yum China, operator of KFC and Pizza Hut, announced that 1,400 of a total of around 12,400 branches in the country were temporarily closed in October – or could only offer limited services.