SHANGHAI, Nov 2 (Reuters) – Chinese electric vehicle maker NIO has said it will cut production at its plant in the eastern city of Hefei as cases of COVID-19 rise and China’s tough response to the outbreak is taking a toll on manufacturing and the economy.
The impact was felt in the central city of Zhengzhou, where industrial park giant Apple ( AAPL.O ) announced a new shutdown of its iPhone factory. Continuous virus clamps.
China is battling its worst outbreak since the summer, forcing millions of residents to stay at home or move to centralized isolation facilities under the country’s strict zero-tolerance COVID-19 policy.
KFC and Pizza Hut chain operator Yum China said on Wednesday that 1,400 of its 12,400 stores in the country had to be temporarily closed or have limited service due to Covid-19 in October, up from 400 of its 900 stores in September. On average in July and August.
“Nationwide, consumer travel is slowing and spending is slowing,” the company said in its quarterly earnings report. “The conditions of COVID are uncertain as regional outbreaks affect our operations.”
On Tuesday, China reported 2,755 new local cases, the highest since mid-August.
Shares fell on Wednesday after Niyo, China’s 13th largest electric vehicle maker by sales, confirmed media reports that it has halted production at two of its factories as it struggles to cope with restrictions that saw Hefei parts locked out until October.
“Our product base was severely affected by the outbreak in October and deliveries to some customers were delayed. We apologize for that,” Neo said in a statement on Tuesday, which showed a 7.5% drop in October from last month.
‘Is there anyone more unlucky?’
As China’s zero-covid-19 policy is out of step with the rest of the world, it has vowed to continue a policy that has faced public and business dismay by responding to even one case with lockdowns and mass testing.
More than 80% of major Chinese cities reported cases last month, with the spread widened by holiday travel and new sub-variables, according to Gavkal Dragonomix, a research house.
“By some measures, China’s current COVID situation is worse than ever,” Capital Economics wrote in a Tuesday note, adding that although there are no signs of major industry disruptions, the risk of an isolated outbreak is weighing on consumer activity.
“And as long as the zero-Covid national goal remains, there is little chance of lasting change,” he said.
The EU Chamber of Commerce in China told Reuters that China’s lack of a clear exit strategy from the policy is an ever-present threat of a lockout and is a major source of uncertainty.
“I am currently in home quarantine for seven days,” said head Jörg Wütke, a colleague of the European Chamber’s Beijing office who is stuck in Tianjin and finds it impossible to return to the capital at the moment, like many others. Reuters this week.
The closure of the city’s Disney resort after a single Covid-positive case in Shanghai continued to fall, with affected residents posting online notifications that they or someone they had been in close contact with after the visit. The park.
Some said on social media platforms such as Duyin and Xiaoxue that they were sent to isolation hotels, while others said they were sent to sparsely furnished isolation rooms created from shipping containers.
“Is there anyone unluckier than me?” User Xiaohongshu, who posted photos of her cabin, said “sanmingliu”.
Reuters could not verify the authenticity of the posts.
Shanghai announced on Tuesday that it had tested 439,000 people in connection with the situation at the Disney resort. On Wednesday, he reported that he had received a domestically transmitted case a day earlier.
Reporting by Brenda Goh and the Shanghai and Beijing newsrooms; Writing by Tony Munro; Editing by Michael Perry
Our Standards: The Thomson Reuters Trust Principles.
