It has been three years since the first case of COVID-19 was reported in Wuhan, but China appears to be loosening its strict coronavirus policy. Instead, isolation centers and makeshift hospitals are expanding upstream to deal with the large number of cases recorded. Panic buying is also taking place amid supermarket delivery programs such as lockdown restrictions in Beijing, where Nomura estimates that more than a fifth of the country has some restrictions.
Dissatisfaction is growing: apple (NASDAQ: AAPL) Foxconn’s ( OTCPK:FXCOF ) iPhone factory in the city of Zhengzhou has attracted a lot of attention as videos of worker unrest have been shared on social media. Foxconn has offered 10,000 yuan, or $1,400, to workers who want to leave, as well as free transportation back home. It’s unclear how many of the 200,000 “iPhone City” employees were affected, but Apple ( AAPL ) noted that “low downloads for the iPhone 14 Pro and iPhone 14 Pro Max” were due to previous lockout procedures, which included accommodations and locations. it’s a responsibility. for 70% of iPhones worldwide.
“The real challenge for the economy lies in the hasty implementation of COVID restrictions rather than adequate liquidity,” wrote Ting Lu, China economist at Nomura. Concerns are mounting as infections soar in the manufacturing province of Guangdong and the megacity of Chongqing, as well as the financial hubs of Shanghai and congested Zhengzhou. At the end of the third quarter, China’s GDP grew by only 3% Y/Y, a slight decrease from the 5.5% rate announced in March.
The nose of the mind: Central leaders in China have seen the zero-COVID policy as a source of national pride, which may reflect the rise of their system, compared to the death toll and disease rate seen in many Western countries. There are also fears that any large-scale outbreak could disrupt China’s health care system (mainly due to a weakened immune system), fuel public anger and undermine trust in the government. At the beginning of this month, officials said that they need to be more specific and focused on the control of the epidemic, but there will be no major changes in the overall zero-covid-19 concept.
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