The Japan News by The Yomiuri Shimbun

China’s ‘zero-COVID’ finally catches up with iPhone output

- By Fukutaro Yamashita

ZHENGZHOU, China — Beijing’s “zero-COVID” policy has nally caught up with shipments of iPhones, following con rmations of outbreaks at factories in Zhengzhou, Henan Province, which is known as “iPhone City,” as it accounts for the majority of global production.

e situation has cast a shadow over projected sales of the latest iPhone series.

“No one is allowed to enter except when supplies and goods are being brought in and out,” a man wearing protective clothing outside a factory said Tuesday.

e three factories in Zhengzhou operated by Taiwan electronic­s giant Hon Hai Technology Group, also known as Foxconn, produce mainly iPhones commission­ed by Apple Inc. of the United States. e factory in the city’s airport area — the largest among the three factories — and its adjacent residentia­l area are all surrounded by a fence more than 2 meters high, e ectively under lockdown.

According to Chinese media, this factory adopted a quarantine “bubble” for its production in mid-October. Workers are prohibited from coming into contact with people outside the bubble, including when traveling to and from dormitorie­s by bus. ey also have to take PCR tests once or twice a day.

e provincial and city government­s

are providing full support by dispatchin­g PCR testing sta to ensure the factory’s continued operations.

Infections have been relatively subdued at another factory located in the center of the city and people can approach it. A worker in his 30s was receiving foodstu s from an acquaintan­ce over a fence on Nov.8. “We must not stop production, but we’re really distressed because the future is uncertain,” he said.

e number of workers at the three

factories totals 200,000 to 300,000, many of whom are believed to be from rural areas.

Foxconn initially said “production and operations are relatively stable,” but, according to the Zhengzhou city government, the number of infected people in the city stood at 1,043 as of Nov.8.

is is more than six times the number on Nov. 2, and there is no sign that the number of infections will abate.

According to Chinese media, in one factory building, two large production lines operated by about 1,000 workers have been consolidat­ed into one. When one worker is infected, dozens of others are forced to be quarantine­d, and the manpower shortage is accelerati­ng, according to media reports.

On Nov. 1, Foxconn announced that it would pay a bonus of 15,000 yuan, or about ¥300,000, to workers who work a full shi schedule this month, and also began to hire temporary workers.

e company also set up a 24-hour complaint and consultati­on service in preparatio­n for a possible mid- or longterm lockdown.

Meanwhile, for workers who wish to leave the factory, buses are available to take them to the station or airport. is provision is believed to exist due to Apple’s emphasis on the health and safety of workers.

Foxconn has many factories, mainly in Zhengzhou and other inland areas where wages are low, and employs around 1 million workers. e factories in Zhengzhou are said to account for about 80% of the total production of the latest iPhone 14, which was released in September.

On Nov.6, Apple acknowledg­ed in a statement that the utilizatio­n rate of factories in Zhengzhou is declining and indicated that the shipment volume is expected to be lower than anticipate­d.

Apple has moved part of its production of the iPhone 14 series to India, but the number of units produced there is expected to be small. e shortage may become apparent during the year-end sales season when demand is expected to peak. (Nov. 17)

 ?? The Yomiuri Shimbun ?? A man wearing a protective suit stands near a fence at the Hon Hai Technology Group’s factory in Zhengzhou, China, on Nov. 8.
The Yomiuri Shimbun A man wearing a protective suit stands near a fence at the Hon Hai Technology Group’s factory in Zhengzhou, China, on Nov. 8.

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