- China forced some of its biggest companies to operate within a "closed loop" restricted system for seven days as the southern manufacturing hub of Shenzhen battled its latest Covid outbreak, Reuters reports.
- The companies included Apple Inc AAPL iPhone maker Hon Hai Precision Industry Co Ltd HNHPF, operating as Foxconn, oil producer CNOOC Ltd, automaker BYD Co, networking giants Huawei Technologies Co and ZTE Corp, and drone-maker DJI.
- Shenzhen reported 21 cases for July 23, versus China's reported 680 cases for the day.
- Also Read: China's Easing Regulatory Relaxations Will Likely Trickle Down Across Tech Companies Including Alibaba - Here's How
- The move coincided with Foxconn's delivery of the next generation of Apple's blockbuster device.
- China demanded that companies restrict operations to employees living within a closed loop, with little to no contact with people beyond their plants or offices with minimal interaction between non-manufacturing staff and factory floors.
- A Foxconn spokesperson said operations at its Shenzhen sites "remained normal." Its plant in the central Chinese city of Zhengzhou is a far more significant iPhone-making hub.
- China's previous lockdown forced Apple supplier Quanta Computer Inc, chipmaker Semiconductor Manufacturing International Corp, and Tesla Inc TSLA to adopt closed loops for their plants for weeks or months.
- Economists and academics had urged Beijing to relax its Covid lockdowns, which were held responsible for disrupting the economy.
- Price Action: AAPL shares traded higher by 0.13% at $154.29 on the last check Monday.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
