Here's How Apple's Crucial Partner Influenced China's Relaxation Of Covid Policies

Here's How Apple's Crucial Partner Influenced China's Relaxation Of Covid Policies
  • 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

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