Economy attacked! Lockdown in China threatens to put brakes on production of big American companies
The way tension between America and China has increased in the last few days, and after that, the discussion has intensified that America and China are now moving towards decoupling. America is leaving no chance to surround China on the issue of Taiwan. Recently the news has come that now America is also deploying B-52 bombers in Australia, whose target will actually be Taiwan. In such a situation, now the lockdown imposed by China in the area of Zhengzhou city, where the iPhone is manufactured, this move is also being seen as a Chinese attack on the US economy.
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China, which acts as a backend factory for America, is now using the Kovid lockdown to shock the American economy. Indeed, China has ordered a seven-day lockdown in the vicinity of Foxconn Technology Group's main plant in Zhengzhou city. It is a move that will significantly restrict shipments from the world's largest iPhone manufacturing factory. In such a situation, when this Chinese factory produces 4 out of five latest iPhones going worldwide, this move of China is being seen as a strategy, not just as a medical emergency. It has been seen before that China has used the Kovid lockdown as a weapon strategically. Consider that there is a lockdown in many areas of China these days and this is disrupting the production of American companies on a large scale. China's lockdown is breaking the back of many US companies at a time when the US economy is reeling from a slowdown and subscriptions were expected to pick up from the upcoming festive season. Due to this, there is a danger of disruption of supply-chain on a large scale.
In fact, according to a statement issued on the WeChat account of the local government of China, the lockdown in the iPhone factory area will continue till November 9. It is believed that due to this move of China, the iPhone manufacturing and shipment of well-known IT giant Apple in the world is now set to get a big blow, which was already battling with the lockdown.
Indeed, Taiwanese company Foxconn, whose main listed company name is Hon Hai Precision Industry, was already grappling with the challenges of the lockdown and has so far quarantined its 2 lakh workers. Due to this, many workers have fled the factory due to Kovid restrictions, many of whom fled on foot, whose videos are going viral on social media. The lockdown in the entire area is a big setback for the company as no one except medical staff and emergency services will be able to come to this area, due to which the work of supplying material and shipment is bound to be disrupted.
Let us tell you, Foxconn's Zhengzhou complex in Henan province has the workspace of about 350,000 workers, and it is one of Apple's largest factories in the world. The company's latest iPhone-14 is also made here. It is being told that 359 Kovid cases were registered in Zhengzhou on Tuesday, which was three times more than the previous day. After this, a lockdown order has been issued in the area by the local administration.
At the same time, experts say that this sudden move by China is in line with Beijing's strategy of Kovid Zero and it is bound to significantly disrupt Foxconn's primary operating base.
However, the company has raised workers' wages to reduce potential inconvenience from this lockdown and also plans to ramp up production at other operation centers in case there is no work on Zhengzhou's assembly lines. Also recently, an attempt has also been made to dispel the rumours of the demise of some ailing staff members on social media. But how the company will produce and send the products out of the outside world, no one has the answer.
