BEIJING: China's Covid-19 curbs forced the temporary closure of Disney’s Shanghai resort on Monday (Oct 31), while production of Apple Inc iPhones at a major contract manufacturing facility could drop by 30% in November due to coronavirus restrictions, a source told Reuters.
In Zhengzhou, a Foxconn plant that makes iPhones and employs about 200,000 people has been rocked by discontent over stringent measures to curb the spread of Covid-19, with numerous staff fleeing the facility, prompting nearby cities to draw up plans to isolate migrant workers returning to their home towns.
A person with direct knowledge of the matter said iPhone production at the plant could drop as much as 30% in November, and that Taiwan-based Foxconn, formally Hon Hai Precision Industry Co Ltd, is working to boost production at a factory in Shenzhen to make up for the shortfall.
Foxconn on Sunday said it was bringing the situation at the Zhengzhou plant under control and would coordinate back-up production with other plants to reduce any potential impact
In Shanghai, the city’s Disney Resort abruptly suspended operations on Monday to comply with Covid-19 prevention measures, with all visitors at the time of the announcement required to remain until they return a negative test.
Disney said it expedited the testing and that all of its visitors had left its theme park. All of the test results were negative, according to a spokesman, who said Disney is working on plans to reopen.
Rising case numbers from outbreaks across China have prompted a tightening of local curbs and lockdowns, including in parts of cities such as the southern metropolis of Guangzhou, as the economic toll of zero-Covid mounts.
“We don’t expect the zero-Covid policy to be abandoned until 2024, which means virus disruptions will keep in-person services activity subdued,” Zichun Huang, economist at Capital Economics, said in a note.
New cases in mainland China hit 2,898 on Sunday, topping 2,000 for a second straight day, a tiny number by global standards. – Reuters
