COVID-19 Curbs are again Hurting Businesses in China

BUSINESS

The COVID-19 curbs imposed in China are again hurting many businesses in China. Several top global and Chinese companies, from automobile companies to tech giants, have experienced large disruptions to their businesses in recent days.

The authorities of China imposed a seven-day lockdown in the area that have biggest iPhone assembly factory in China, in the central city of Zhengzhou. The facility, which is operated by Foxconn, one of Apple’s largest suppliers in China, has been struggling with a COVID-19 outbreak that has caused panic among the migrant workers.

The COVID-19 lockdowns are putting pressure on Foxconn just before the holiday season and could affect the shipment and production of the company. Foxconn is not the only company dealing with the COVID-19-related issues at the workplace.

Shanghai resort of Disney had also suspended operations to comply with COVID-19 measures. The visitors have been locked inside the part until they provide a negative test for COVID-19 virus.

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Automobile companies in China are also being affected badly as COVID-19 cases rise across the country, and the Chinese authorities has impose mandatory quarantines, mass testing, and lockdowns in several areas.

According to EV maker Nio, vehicle production and delivery were constrained by operation challenges in their plants because of worsening COVID-19 situations in several regions of China.