Taiwanese tech giant Foxconn has ended a months-long “closed loop” regime at the world’s largest iPhone factory in central China, spearheading Beijing’s nationwide relaxation of zero-Covid regulations.
Earlier this week, the Chinese government rolled back most mass testing and lockdown requirements to speed up the return to normal life, significantly easing three years of restrictions that have fueled its economy and fatigued its population.
That Foxconn The facility in central Zhengzhou was effectively locked down for 56 days, with workers only allowed to travel between their dormitories and the factory floor on shuttle buses after cases were spotted in October.
Violent protests by new recruits over wages and conditions erupted in mid-November, with hundreds demonstrating and some clashed with riot police and health workers.
On Thursday, the company announced it was ending the closed-loop system.
“In view of the … further lifting of anti-epidemic measures in China, the company requires employees to provide a negative 48-hour test result in order to be able to return to work,” said a statement published on Thursday Official WeChat account of Foxconn’s main campus was released in Zhengzhou, Henan Province.
The company added that its shuttle buses had resumed operations and urged employees who did not participate in the closed loop to return to work “as soon as possible”.
Other official WeChat accounts from agencies hiring for Foxconn also announced that the “closed loop” is being lifted.
Foxconn, also known by its official name Hon Hai Precision Industry, is the world’s largest custom electronics manufacturer, assembling equipment for many international brands.
Most of its factories are located in China, the largest in Zhengzhou – known as “iPhone City”.
As part of Beijing’s zero-Covid policy, lockdowns were imposed on the city last month following a spike in infections.
The ongoing disruptions and protests severely impacted Foxconn’s hiring practices and shook the stability of the supply chain, which Beijing attaches great importance to.
A letter from Foxconn founder Terry Gou warning Chinese leaders about the damage to supply chains from zero-Covid helped government advisers call for an end to the policy, the Wall Street Journal reported 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 previously said it was downgrading its outlook for the most recent quarter. Some analysts have predicted sales could fall by as much as 20 percent.
