Here's How Apple's Crucial Partner Influenced China's Relaxation Of Covid Policies
Author: Anusuya Lahiri | December 08, 2022 12:46pm
Leading Apple Inc (NASDAQ:AAPL) iPhone assembler Hon Hai Precision Industry Co Ltd (OTC:HNHPF), operating as Foxconn, was instrumental in persuading China to ease its Covid-19 policies.
Foxconn founder Terry Gou's letter to Chinese leaders warned against its strict Covid controls costing China's leadership in global supply chains, the Wall Street Journal reports.
Gou also sought more transparency into restrictions on the company's workers.
Gou had sent the letter a little more than a month ago as Covid curbs afflicted Foxconn's factory in Zhengzhou.
Chinese health officials and government advisers seized on Gou's letter to bolster the ease down.
Officials and advisers pushing for softer measures argued that the zero-tolerance approach had successfully protected public health, but the Omicron variant required much more.
Chinese leaders, including President Xi Jinping, had already explored steps toward reopening after nearly three years of harsh pandemic restrictions, which led to lower death tolls and compromised economic growth.
Chinese leaders were concerned that the Covid disruptions, along with escalating political tensions between U.S. and Beijing, could lead to a broader decoupling between China and the world.
Price Action: AAPL shares traded higher by 1.21% at $142.65 on the last check Thursday.