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It has been three years since the first COVID-19 case was reported in Wuhan, but China does not appear to have abandoned its strict coronavirus policies. In fact, quarantine facilities and field hospitals are expanding around the world. mainland to deal with the largest increase of recorded cases. Panic buying is also taking place among supermarket delivery apps as lockdown-like restrictions are imposed in Beijing, while Nomura estimates that more than a fifth of the country is being hit. movement restriction.
Growing dissatisfaction: Apple (NASDAQ:AAPL) supplier Foxconn’s (OTCPK:FXCOF) The iPhone factory in Zhengzhou City drew undue attention when videos of the worker riots were published. To share on social networks. Since then, Foxconn has offered 10,000 yuan, or $1,400, payments to workers who wanted to leave, as well as free transportation to return home. It’s unclear how many of the 200,000 employees in “iPhone City” participated, but Apple (AAPL) flagged “lower iPhone 14 Pro and iPhone 14 Pro Max shipments” due to previous restrictions at the complex, which includes dorm rooms and is responsible for 70% of global iPhone production .
“The real barrier to the economy lies in the eagerness of local officials to implement COVID restrictions rather than insufficient loans,” wrote Ting Lu, chief China economist at Nomura. Concern is growing as infections increase in the manufacturing province of Guangdong and the megacity of Chongqing, as well as the financial hub Shanghai and the heavy logistics hub Zhengzhou. At the end of the third quarter, China’s GDP grew only 3% year-on-year, well below the official target of around 5.5% announced in March.
Thought Bubbles: China’s central leaders have cited the COVID-free policy as a source of national pride, possibly demonstrating the superiority of their system, compared to the number of deaths and infections seen in many countries. Western family. There are also concerns that any major outbreak could overwhelm China’s health care system (especially given the people’s low natural immunity), mobilizing the anger of public and erode trust in government. Earlier this month, officials said they would be more specific and targeted in implementing pandemic control measures, but there would be no fundamental change to the general view of COVID-free.
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