China's COVID restrictions affected iPhone production, Shanghai Disney closed

China’s COVID restrictions affected iPhone production, Shanghai Disney closed

  • Big iPhone factory may see 30% drop in production in November source
  • Shanghai Disney Resort closes, visitors stay inside for testing
  • China’s October PMI unexpectedly weak
  • Gaming center in Macau reimposes COVID restrictions

BEIJING (Reuters) – China’s COVID-19 restrictions forced the temporary closure of a Shanghai Disney resort on Monday, while production of Apple’s iPhones at a large contract manufacturing facility could drop by 30 percent in November. The second is due to the restrictions of the Corona virus. to Reuters.

In Zhengzhou, a Foxconn factory that makes iPhones and employs about 200,000 people has been enraged by strict measures to curb the spread of COVID-19, with many employees fleeing the facility, prompting nearby cities to make plans to isolate returning migrant workers. to their home towns.

“There were so many people on the road, as if we were escaping from a famine,” said a Foxconn worker in his 30s surnamed Yuan, who said he climbed the fences in order to leave the factory and return to his hometown in central China. My love.

A person with direct knowledge of the matter said iPhone production at the factory could drop by as much as 30% in November, and Taiwan-based Foxconn, Hon Hai Precision Industry Co Ltd. (2317.TW)It is ramping up production at a factory in Shenzhen to make up for the shortfall.

Foxconn said on Sunday that it would bring the situation at the Zhengzhou plant under control and coordinate backup production with other plants to minimize any potential impact.

In Shanghai, the city’s Disney resort abruptly halted operations Monday to comply with COVID-19 prevention measures, with all visitors at the time of the announcement being asked to stay until they return to test negative.

Disney said it has expedited testing and that all of its visitors have left its theme park. All of the test results were negative, according to a spokesperson, who said Disney is working on plans to reopen.

Videos circulating on China’s Twitter-like website Weibo, which could not be independently verified, showed people rushing to the park’s gates, which were already closed. Videos of people fleeing shopping malls and office buildings in fear of being locked up have become a common occurrence on Chinese social media this year.

Rising case numbers from outbreaks across China have tightened restrictions and local lockdowns, including in parts of cities such as the southern city of Guangzhou, where the economic toll from the novel coronavirus outbreak is mounting.

Data released on Monday showed Chinese factory activity unexpectedly fell in October, impacted by sluggish global demand and severe domestic restrictions from COVID-19, which affected production, travel and shipping in the world’s second-largest economy.

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China has shown few signs of laying groundwork that will enable it to roll back its COVID policy that it says saves lives has been cut off from the world as most of the world tries to live with the coronavirus.

A man pushes a woman in a wheelchair in front of a poster showing a drawing of medical workers at a nucleic acid testing booth for the coronavirus disease (COVID-19), in Beijing, China, October 27, 2022. REUTERS/Tingshu Wang/File Photo

At the Communist Party Congress, which takes place twice a decade this month, President Xi Jinping reiterated China’s commitment to not spreading the coronavirus, disappointing investors and countless Chinese frustrated with lockdowns, travel restrictions and testing.

“We do not expect to abandon the policy of eliminating the emerging corona virus until 2024, which means that virus disruptions will keep personal services activity weak,” said Zhichun Huang, an economist at Capital Economics, in a note.

The number of new cases in mainland China reached 2,898 on Sunday, exceeding 2,000 for the second day in a row, a tiny number by global standards.

In Guangzhou, one of China’s largest cities, the total number of new locally transmitted cases reached 1,110 from October 24-30, up from 402 in the previous seven-day period, with the Haizhou district, home to 1.8 million people, on lockdown. .

Yi, a Guangzhou resident, said he was sent to a quarantine hotel in a suburb after being told on Thursday that he was deemed to have been in close contact by virtue of walking down the same street three days ago around the same time as someone who tested positive for the virus.

“I don’t know how they calculated that,” said Yi, an artist in his fifties. “Also, there’s no room for you to inquire about or object to it.”

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Over the past week, authorities have raced to deal with the rising cases in cities across China, including Datong, Xining, Nanjing, Xi’an, Zhengzhou and Wuhan, imposing temporary lockdown measures.

Du Fan, 40, founder of the Wuhan Small Animal Protection Association, which won praise from animal lovers during the first epidemic lockdown in the city center in early 2020, said his apartment complex was closed on Saturday.

“My biggest concern right now is that if this goes on for too long, I’m afraid we won’t be able to continue saving the animals, because there’s no way to do much work,” he said.

In the Chinese-controlled region of Macau, authorities reimposed restrictions including closing a large casino over the weekend after discovering a small number of cases. Macau has been COVID-free for more than three months.

However, the Universal Resort theme park in Beijing reopened on Monday after being closed last week because a visitor tested positive for the coronavirus.

Additional reporting by Brenda Goh, Yimou Lee, Ryan Wu, Beijing and Shanghai Editorial Rooms; Written by Tony Munro Editing by Shri Navaratnam, Gareth Jones and Jane Merriman

Our criteria: Thomson Reuters Trust Principles.

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