A letter from the founder of Foxconn Technology Group, the world's largest iPhone assembler, may have played a big part in China’s decision to ease its “Zero-COVID” policy.
Terry Gou wrote to government leaders last
month to plead for fewer restrictions after thousands of workers at Foxconn's
plant in Zhengzhou fled, fearing infection, because the plant went on lockdown,
the Wall Street Journal reported. On November 3, shortly after Gou sent the
letter, a Party-run health publication described virus symptoms as short-lived
and mild, a reversal from previous depictions that called it so severe that it
merited quarantines.
Health officials and government advisors
used the letter, and subsequent nationwide protests over pandemic restrictions
that rivaled unrest that led to the Tiananmen Square massacre, to bolster their
case to relax the rules, the Journal said, citing people familiar with the
matter. The government did just that this week, saying it would loosen lockdown
protocols and allow small businesses to stay open.
A statement from Gou’s personal office
denied the existence of the letter, without providing elaboration, the
newspaper said. Foxconn, Apple, and China’s State Council Information office
didn’t respond to its requests for comment.
A statement from Gou’s personal office
denied the existence of the letter, without providing elaboration, the
newspaper said. Foxconn, Apple, and China’s State Council Information office didn’t
respond to its requests for comment.
The pandemic restrictions have hurt
business for Apple Inc. (AAPL), which estimated it would produce 6 million
fewer iPhones this year, and Foxconn said revenue fell by 29% in November from
October. The unrest prompted concern that Apple and other overseas companies
would move production out of China.
Foxconn is trying to restore production to
pre-pandemic levels by filling open positions. The Zhengzhou facility has
between 40% and 50% of the number of workers it had at full production
capacity.
“In addition to reallocating the production
capacity of different factories, we have also started to recruit new employees,
and are gradually moving in the direction of restoring production capacity to
normal,” the company said earlier this week.
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