It has been almost three years since Kovid-19 first hit China, but the country’s relentless adherence to the lockdown is affecting business and the economy.
Top global and Chinese companies, from car makers to tech giants as the world’s second largest economy, have experienced huge disruptions in their business in recent days. gets doubled On his zero-Covid approach with strong support for the policy after Xi Jinping began his third term in power.
On Wednesday, authorities imposed a seven-day lockdown in the central city of Zhengzhou in an area home to China’s largest iPhone assembly factory.
Powered by Foxconn, one of Apple’s
(AAPL) The facility, the largest supplier, has been battling a Covid outbreak since mid-October, causing panic among its migrant workers.
Videos of people walking out of Zhengzhou have gone viral on Chinese social media in recent days. State media said several Foxconn employees were among the miles of pedestrians on the highway to escape the factory.
Lockdowns and exodus are putting tremendous pressure on Foxconn just ahead of the major holiday shopping season and could impact assembler production and shipments.
The Taiwanese manufacturer is not the only one dealing with the chaos related to COVID at the workplace this week. Disney’s on Monday
(dis) The Shanghai resort abruptly suspended operations to comply with COVID-19 containment measures. Visitors have been locked inside the park until they show negative tests for the virus.
Carmakers are also being affected as cases rise across China, and authorities have enforced lockdowns, mandatory quarantines and repeated group test.
On Wednesday, Chinese state media outlet National Business Daily said that electric car maker Nio
(NIO) closed two factories in the eastern city of Hefei because Covid curb. The company said in a statement on Wednesday that its production was affected by the pandemic last month.
“Vehicle production and distribution were constrained by operational challenges at our plants as well as supply chain instability due to COVID-19 conditions in some regions in China,” Nio said.
(YUMC)The Shanghai-based company, which owns KFC, Pizza Hut and Taco Bell chains in China, also presented a disappointing picture in its quarterly earnings.
“In October, approximately 1,400 of our stores were either temporarily closed or offered only takeaway and delivery services,” the company said on Tuesday. “Nationwide, consumers are traveling less and spending less,” it added.
There is little hope of relief. Authorities have increased COVID restrictions, and cases are rising after Xi’s sweeping power grab at the Communist Party Congress last month. China on Tuesday reported 2,755 local infections, its highest daily infections since August.
Credit : www.cnn.com