- Leading Apple Inc AAPL iPhone assembler Hon Hai Precision Industry Co Ltd HNHPF, operating as Foxconn, was instrumental in persuading China to ease its Covid-19 policies.
- Foxconn founder Terry Gou's letter to Chinese leaders warned against its strict Covid controls costing China's leadership in global supply chains, the Wall Street Journal reports.
- Gou also sought more transparency into restrictions on the company's workers.
- Gou had sent the letter a little more than a month ago as Covid curbs afflicted Foxconn's factory in Zhengzhou.
- Chinese health officials and government advisers seized on Gou's letter to bolster the ease down.
- The nationwide protests gave policy advisers further ammunition to press the case for relaxing measures.
- Officials and advisers pushing for softer measures argued that the zero-tolerance approach had successfully protected public health, but the Omicron variant required much more.
- Chinese leaders, including President Xi Jinping, had already explored steps toward reopening after nearly three years of harsh pandemic restrictions, which led to lower death tolls and compromised economic growth.
- China's Covid policies, followed by workers' chaos, led to Apple migrating its production outside China.
- Chinese leaders were concerned that the Covid disruptions, along with escalating political tensions between U.S. and Beijing, could lead to a broader decoupling between China and the world.
- Price Action: AAPL shares traded higher by 1.21% at $142.65 on the last check Thursday.
- Image by Kurious from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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