Terry Gou, the founder of the world’s largest iPhone assembler, Foxconn, reportedly sent a letter to the Chinese government and warned them that the restrictions under its zero-Covid-19 policy would threaten China’s central position in global supply chains, the Wall Street Journal (WSJ) reported. The letter was sent a month ago when Foxconn’s factory in Zhengzhou was rocked by protests.
Gou demanded “more transparency into restrictions on the company’s workers”, the report said, citing people aware of the matter. The letter was seized on by health officials and government advisers to tell the government that it needed to ease the Covid-19 restrictions. The nationwide protests, which took place weeks after the letter was sent, further solidified their case.
Gou’s personal office, however, denied sending any such letter. He retired from the company in 2019. Apple and China’s State Council Information Office did not respond to WSJ‘s queries.
In the last few days, reports have stated that China has eased its toughest restrictions after the protests. It is no longer required to show Covid-19 tests at most venues. People can also travel more freely inside the country. International travel, however, is still restricted.
Also, now people with mild or no symptoms can isolate themselves at home. Earlier, all Covid positive people were forcibly taken to quarantine camps.
The restrictions posed a major challenge to the supply chain of the companies in China. Apple was reportedly planning to shift a part of its production out of China. The Zhengzhou plant is Apple’s biggest in the world.
Samsung, Volkswagen AG and a textiles company that supplies products to Nike and Adidas faced similar production and supply issues in the country, WSJ said.
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