Foxconn Technology Group (富士康科技集團) has ended a months-long “closed loop” system at the world’s biggest iPhone factory in central China, citing Beijing’s nationwide loosening of its “zero COVID” regulations.
Earlier this week, the Chinese government rolled back most mass testing and lockdown requirements to hasten a return to normal life, significantly relaxing three years of disease prevention restrictions that have tanked its economy and wearied its population.
The Foxconn facility in Zhengzhou City was in effective lockdown for 56 days, with workers only allowed to travel between their dormitories and the factory floor on shuttle buses after cases were discovered in October.
Photo: Ann Wang, Reuters
In the middle of last month, violent protests by new recruits erupted over salaries and conditions, with hundreds marching, and some clashing with riot police and health workers.
The company on Thursday said it was ending the closed loop system.
“Given the ... further lifting of China’s epidemic control measures, the company requires employees to present a 48-hour negative test result in order to return to work,” a notice posted on Thursday on the WeChat account of Foxconn’s main campus in Zhengzhou, Henan Province, said.
The company added that its shuttle buses had resumed service and urged employees who had not been taking part in the closed loop to return to work “as soon as possible.”
Other WeChat accounts of agencies hiring for Foxconn also announced that the “closed loop is lifted.”
Foxconn, known as Hon Hai Precision Industry Co (鴻海精密) in Taiwan, is the world’s biggest contract electronics manufacturer and assembles gadgets for many international brands.
Most of its factories are in China, with its biggest in Zhengzhou — which has been dubbed “iPhone city.”
Lockdowns were imposed in the city last month as part of Beijing’s “zero COVID” policy after a spike in infections.
The prolonged factory disruption and protests heavily impacted Foxconn’s hiring practices and rocked supply chain stability, to which Beijing attaches high importance.
A letter sent by Foxconn founder Terry Gou (郭台銘) warning the Chinese leadership about the damage to supply chains from the “zero COVID” policy helped government advisers argue for an end to the policy, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Foxconn’s reported revenue last month fell 11.4 percent year-on-year and 29 percent from October.
It earlier said it was revising down its outlook for the fourth quarter.
Some analysts have predicted sales could drop as much as 20 percent.
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