China Imposes Lockdown in a Section of Zhengzhou City

In accordance with the nation's stringent coronavirus regulations, Chinese authorities closed down a section of Zhengzhou city, which is home to the largest iPhone production in the world. Additionally, beginning on Wednesday, there will be a seven-day lockdown. The change could affect the production of the new iPhone 14, manufactured at a factory owned by Foxconn in the city. The strict zero-Covid policy of Chinese President Xi Jinping is still causing problems for the country's citizens and enterprises. Furthermore, local officials announced on Wednesday that the Zhengzhou Airport Economy Zone would be under lockdown beginning immediately and ending at noon local time on November 9. An official announcement on the social media site WeChat advises individuals to work from home and suspends public transportation services. Moreover, the authorities promised to "resolutely crack down on all kinds of violations of regulations." On another note, there are roughly 10 million people living in Zhengzhou, the provincial capital of Henan in central China. In the seven days leading up to last Saturday, it documented 167 locally transmitted infections, up from 97 the week before.

Additional details

The shutdown occurs just after the release of the iPhone 14 and before the crucial Christmas and Lunar New Year shopping seasons, which are critical times for Apple. In addition, the majority of Apple's new phones are made at Foxconn's Zhengzhou facility, which has about 200,000 employees. [caption id="attachment_58232" align="aligncenter" width="1600"] image credit: yahoo[/caption] Following a worker breakout during a Covid lockdown, Foxconn announced on Tuesday that it increased its daily bonuses at the manufacturing hub. The company also announced an increase in the daily bonus for assembly line workers to 400 yuan ($55.02; £47.76). Additionally, Foxconn announced that the maximum bonus for employees who put in more than 25 days per month at the factory would increase to 5,000 yuan from 1,500 yuan. In addition, it noted that it would grant a total incentive of more than 15,000 yuan to individuals who put in their "full effort" in November without taking any time off. [caption id="attachment_58234" align="aligncenter" width="1600"] image credit: scmp[/caption] The corporation stated that it is giving the bonuses in an effort to "gradually resume orderly production" and to "thank our fellow employees' persistence." However, it still hasn't given a precise estimate of how many individuals at the plant contracted the coronavirus.

What's more

Foxconn reported last Wednesday that a "small number of employees" in Zhengzhou had been "affected by the pandemic" and were receiving "material supplies, psychological comfort, and responsive feedback." It added, "At present, the epidemic prevention work in Zhengzhou is progressing steadily, and the impact on the group is controllable. The operating outlook for this quarter remains unchanged." However, a video posted on Chinese social media claimed that to escape discovery on public transportation, workers were supposedly seen departing the premises and starting long journeys back to their hometowns. [caption id="attachment_58233" align="aligncenter" width="1600"] image credit: ndtv[/caption] One employee, identified only as Xia, 22, told the Financial Times that the dormitories where he and other employees were housed were "total chaos." Additionally, workers reportedly said that the area surrounding the company had been under lockdown for days, with Covid-positive employees being tested every day to limit the infection. To "improve the convenience and satisfaction of employees' lives," Foxconn said on Sunday that it would no longer force plant staff to eat meals in their dormitories. The company continued by stating that it was collaborating with the regional government to offer a "point-to-point orderly return service" for staff members who desired to return home. But it's unclear how employees will be able to go home now that the district has been evacuated.

Conclusion

Coronavirus outbreaks have recently affected other enterprises in China. On Wednesday morning, the Nio electric vehicle company in China announced that it shut down two of its factories in the eastern city of Hefei. [caption id="attachment_58237" align="aligncenter" width="1600"] image credit: theguardian[/caption] The company also announced this week that it delivered over 10,000 vehicles in October. According to the statement, the numbers were "constrained by operation challenges in our plants as well as supply chain volatilities due to the Covid-19 situations in certain regions in China."