New Delhi
CNN Business
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It’s been three years since Covid-19 first hit China, but the country’s ongoing lockdowns continue to disrupt trade and the economy.
Big global and Chinese companies, from carmakers to tech giants, have faced major disruptions to their businesses as the world’s second-largest economy has doubled down on its zero-covid approach since Xi Jinping began his third term with a vote. The policy.
On Wednesday, authorities imposed a seven-day lockdown on China’s largest iPhone assembly plant in the central city of Zhangzhou.
The facility, run by Foxconn, one of Apple’s ( AAPL ) biggest suppliers, has been struggling since mid-October with a Covid outbreak that has terrorized its migrant workers.
In recent days, videos of Zhengzhou leaving on foot have gone viral on Chinese social media. State media reported that many Foxconn workers were among those who traveled miles on highways to escape the factory.
The lockout and walkout are putting significant pressure on Foxconn just ahead of the key holiday shopping season and could affect assembly line production and shipments.
The Taiwanese manufacturer isn’t the only one dealing with Covid-related chaos in the workplace this week. On Monday, Disney’s ( DIS ) Shanghai resort abruptly halted operations to comply with Covid-19 prevention measures. Visitors are locked in the park until they test negative for the virus.
Automakers are also being hit as cases rise across China, with authorities imposing lockdowns, mandatory quarantines and repeated Mass testing.
On Wednesday, China’s state media National Business Daily reported that electric car maker NIO (NIO) has closed two factories in the eastern city of Hefei. Covid limits. In a statement on Wednesday, the company said production was affected by the outbreak last month.
Due to the effects of Covid-19 in certain regions in China, production and supply of vehicles has been limited by problems in plants and supply chain volatility, Neo said.
Yum China ( YUMC ), the Shanghai-based company that owns China’s KFC, Pizza Hut and Taco Bell chains, also posted a dismal quarterly earnings report.
“During October, approximately 1,400 of our stores were temporarily closed or offered pickup and delivery only,” the company said on Tuesday. “Nationwide, consumers are traveling less and cutting costs,” he added.
There is little sign of relief in sight. Authorities have lifted Covid restrictions since Xi’s inauguration at a Communist Party congress last month, and cases are on the rise. China reported 2,755 domestic infections on Tuesday, the highest daily number since August.
