- 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 (NASDAQ:AAPL) iPhone maker Hon Hai Precision Industry Co Ltd (OTC: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 (NASDAQ: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.
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