Foxconn closes the largest iPhone assembly plant in China after months of "Closed Loop."
- The largest iPhone assembly plant in the world is Foxconn's Zhengzhou facility.
- For 56 days, the building was effectively under lockdown.
- The business said Thursday that the closed loop system would be discontinued.
In response to Beijing's widespread relaxation of zero-Covid laws, Taiwanese tech company Foxconn has stopped a months-long 'closed loop' system at the largest iPhone manufacturing in the world in central China.
To hasten the return to regular life, the Chinese authorities drastically lifted restrictions that had been in place for three years earlier this week. The Chinese economy had been decimated by these limitations, and the people were exhausted.
The business emphasised that its shuttle buses were back in operation and invited staff members who weren't a part of the closed loop to come in “as soon as feasible.” The Foxconn factory in the centre of Zhengzhou was virtually put on lockdown for 56 days after it was made aware of the incidents in October, with workers only allowed to travel between their dormitory and the factory floor via shuttle buses.
In the middle of November, there were violent protests by new employees over salary and working conditions; hundreds marched and some got into fights with riot police and medical staff. The company announced the end of the closed loop system on Thursday.
The 'closed loop is lifted,' according to other official WeChat accounts of entities that work with Foxconn, was also revealed. The largest contract electronics manufacturer in the world, Foxconn (official name Hon Hai Precision Industry), assembles devices for numerous global brands. Most of its manufacturing facilities are in China, with the primary one located in Zhengzhou, also referred to as 'iPhone city.'
Lockdowns were implemented in the city last month as part of Beijing's zero-Covid policy in response to an uptick in infections. Foxconn's hiring practises were significantly hampered, and the prolonged production halt and protests shook the supply chain stability, which Beijing places a high value on.
The Wall Street Journal on Thursday cited persons familiar with the situation to suggest that a letter from Foxconn founder Terry Gou warning the Chinese leadership about the harm zero-Covid would cause to supply chains would aid government advisers in their case for ending the policy.