Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Apple supplier Foxconn's founder pushed China to ease COVID curbs - WSJ

Published 12/08/2022, 09:48 AM
Updated 12/08/2022, 07:51 PM
© Reuters. FILE PHOTO: The Foxconn logo is seen on a glass door at its office building in Taipei, Taiwan November 12, 2020. REUTERS/Ann Wang/File Photo
AAPL
-

(Reuters) -Apple supplier Foxconn's founder Terry Gou had warned China that the government's zero-COVID stance would threaten the position of the world's second-largest economy in the global supply chain, the Wall Street Journal reported.

The appeal, sent by Gou in a letter more than a month ago, played a major role in convincing China's leadership to quickly reopen the economy and move away from its zero-tolerance COVID-19 policy, the report said on Thursday, citing people familiar with the matter.

Gou's office said in a statement that it "sternly denies" the facts in the report. Foxconn, which is the biggest assembler of iPhones, declined to comment, while China's State Council Information Office could not be immediately reached for comment.

Gou retired from Foxconn in 2019 and has no formal role within the company any more, though remains influential.

The Taiwan-based company's Zhengzhou plant, which saw a month-long unrest in November, has lifted its "closed-loop" management curbs on Thursday.

The Zhengzhou plant had been grappling with strict COVID restrictions that fuelled discontent among workers over factory conditions, triggering an 11.4% year-on-year drop in November revenue.

© Reuters. FILE PHOTO: The Foxconn logo is seen on a glass door at its office building in Taipei, Taiwan November 12, 2020. REUTERS/Ann Wang/File Photo

Some Wall Street analysts cut their iPhone shipment targets for the all-important holiday quarter as a result of turmoil at the major iPhone factory.

Chinese health officials and government advisers seized on Gou's letter to bolster the case that the government needed to speed up its efforts to ease its tough COVID-19 controls, the report added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.