COVID restrictions in China affect iPhone and close Shanghai Disney

BEIJING (Reuters) – Chinese COVID-19 restrictions forced the temporary closure of Disney’s Shanghai hotel on Monday, while Apple Inc’s iPhone production at a main contract production plant could fall 30% in November due to coronavirus restrictions, a source told Reuters.

Hengzhou, a Foxconn factory that makes iPhones and employs about 200,000 people, has been rocked by discontent with strict measures to curb the spread of COVID-19, with many employees fleeing the facility, prompting nearby cities to expand plans to isolate migrants returning to their hometowns.

“There were a lot of other people on the way, as if we were escaping from hunger,” said a Foxconn employee in his thirties surnamed Yuan, who said he climbed the fences to get out of the factory and back to his own in downtown China. Hebi.

A user with direct knowledge of the case said iPhone production at the factory could fall as much as 30% in November, and Taiwan-based Foxconn, formerly Hon Hai Precision Industry Co Ltd, is bidding to ramp up production at a Shenzhen factory to make up the shortfall.

Foxconn said Sunday it was on stage at the Zhengzhou plant and would coordinate backup production with other factories to lessen any potential impact.

In Shanghai, the city’s Disney Resort suspended operations Monday to comply with COVID-19 prevention measures, and all Guests at the time of announcement were expected to remain until they tested negative.

Disney said it expedited verification and that all of its guests had left its theme park. All effects of the verification were negative, according to a spokesman, who said Disney is executing reopening plans.

Videos circulating on China’s Weibo Twitter, which may not be independently verified, show other people running towards the park gates, which were already locked. Social media this year.

Cases of outbreaks in China have led to stricter restrictions and local lockdowns, adding parts of cities like the southern city of Guangzhou, as the economic cost of zero-COVID.

Data released Monday showed Chinese factory activity fell in October, driven by slowing global demand and tight domestic COVID-19 restrictions, which hit production, travel and shipping in the world’s second-largest economy.

EXTRAORDINARY COVID

China has shown little sign of laying the groundwork that would allow it to pull out of a COVID policy it says saves money and has made it an outlier, as much of the rest of the world is trying with the coronavirus.

At this month’s twice-decade-long Communist Party Congress, President Xi Jinping reiterated China’s commitment to COVID 0, disappointing investors and countless Chinese frustrated by lockdowns, restrictions, and testing.

“We don’t expect the zero COVID policy to be abandoned until 2024, meaning viral disruptions will keep in-person activity subdued,” Zichun Huang, an economist at Capital Economics, said in a note.

New cases in mainland China reached 2,898 on Sunday, surpassing 2,000 momentarily a day, a small number by standards.

In Guangzhou, one of China’s largest cities, the number of new instances transmitted rose to 1110 from Oct. 24-30, up from 402 in the last seven-day period, with Haizhu district, home to 1. 8 million people, under lockdown.

A Guangzhou resident named Ye said he was sent to a suburban quarantine hotel after learning Thursday that he thought he was a close contact due to the fact that he walked down the same street 3 days earlier around the same time as someone who tested positive.

“I don’t know how they calculated that. Besides, you don’t have the opportunity to question it or question it,” said Ye, an artist in his fifties.

PUSHED

Over the past week, the government has rushed to involve emerging cases in cities across China, adding Datong, Xining, Nanjing, Xian, Zhengzhou and Wuhan, forcing transient lockdown measures.

Du Fan, 40, founder of the Wuhan Small Animal Protection Association, which received praise from animal lovers for the first pandemic closure in the city center in early 2020, said his residential complex was closed on Saturday.

“My biggest fear right now is that if this goes on for a long time, I’m afraid we may not be able to keep saving the animals, because there’s no way to do a lot of work,” he said.

In the Chinese-controlled territory of Macau, the government reinstated restrictions, closing a major casino over the weekend after some cases were detected. Macau had been COVID-free for more than three months.

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

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