China Lifts Lockdown in Zhengzhou, Major iPhone Production Hub... Residents Allowed to Go Out

Abolition of Mandatory PCR Testing and Resumption of Public Transportation
Expectations for Foxconn Factory Operations to Return to Normal

On the 23rd, workers are protesting at the Foxconn factory in Zhengzhou, China.

[Asia Economy Reporter Lee Ji-eun] The city of Zhengzhou, the world's largest iPhone production hub, has finally lifted its lockdown measures. This move is interpreted as an effort to quell the growing dissatisfaction among citizens caused by strict quarantine measures and to normalize operations at the Taiwanese company Foxconn's factory.

According to Bloomberg on the 30th, the Zhengzhou city authorities in Henan Province announced, "We will remove movement controls and implement normal COVID-19 prevention measures," thereby lifting the existing lockdown. Consequently, public transportation services have resumed, and residents outside of high-risk COVID-19 zones are now allowed to go outside.

Additionally, residents outside high-risk areas who stay at home without going out are not required to undergo polymerase chain reaction (PCR) testing. Previously, since the 25th, Zhengzhou had prohibited residents in eight urban districts from going outside and had been conducting daily PCR tests.

Zhengzhou's easing of quarantine measures is seen as a response to the Chinese health authorities' announcement the previous day that some measures had been excessive. Some analysts also suggest that concerns over disruptions to operations at Foxconn's factory, the world's largest iPhone production base, influenced this decision. The Foxconn factory in Zhengzhou is responsible for 70% of the global iPhone production. In particular, over 80% of the popular iPhone 14 series and more than 85% of the Pro models are produced there.

After Zhengzhou locked down the factory starting in mid-October, 20,000 workers left the factory. On the 23rd, a large-scale protest occurred when factory workers clashed with police demanding better working conditions. As a result, production sharply declined, leading to forecasts that Apple's fourth-quarter iPhone shipments, initially expected to be around 80 million units, could decrease by more than 2 to 3 million units.

Bloomberg explained, "The situation at the Foxconn factory shows the difficulties Chinese authorities face in implementing quarantine policies without damaging the economy," adding, "Although the easing of quarantine policies is minimal, the authorities' changes are giving hope to market observers."

This content was produced with the assistance of AI translation services.