After Chinese health officials announced an accelerating move to vaccinate older people against Covid-19, a sign the world's second-largest economy could be reopening after disastrous zero Covid policies, a new report says the metro area around the world's largest iPhone plant is set to loosen Covid restrictions.
Bloomberg reported Foxconn's massive iPhone factory in Zhengzhou, central China, is set to ease Covid control measures.
We noted last week that Zhongzhou authorities posted a statement on its WeChat page about mobility restrictions around the city due to rising infections. Now it appears restrictions are being lifted.
Also last week, a combination of Coivid restrictions at the iPhone plant and city, along with pay disputes among new workers at the factory, led to massive unrest that is set to cause supply woes for Apple.
On Monday, there was speculation by Bloomberg that disruptions at the factory could result in a 6 million iPhone Pro production shortfall by the end of the year.
The headline was enough to send Apple shares plunging from session highs.
Hong Kong markets and Chinese stocks listed in the US surged in premarket trading as Chinese government health experts made an unscheduled overnight announcement in which they not only vowed to speed up Covid shots for the elderly but to avoid excessive restrictions, fueling a new round of bets that Beijing is bending to the pressure of an economic reopening.