According to the Wall Street Journal, Terry Gou, the founder of Foxconn, was the one who persuaded China to abandon its zero-Covid policy and relax regulations. Gou reportedly warned Beijing that its status as the second-largest economy in the world in terms of the global supply chain is in jeopardy because of COVID-19’s stringent stance. According to the article, Gou’s letter, which was sent more than a month ago, was crucial in persuading China’s leadership to swiftly reopen the economy and alter its COVID-19 policy.
Gou retired in 2019 and is no longer actively involved in the business
Foxconn chose not to respond to the report while Gou’s office “sternly” disputed it. Notably, Gou retired in 2019 and is no longer actively involved in the business. He still has some control over its affairs, though.
During a month-long period of unrest in November at the Zhengzhou plant, there were rumors that workers were escaping the firm due to poor working conditions and a lack of supplies because of the COVID restrictions. On Thursday, “closed-loop” management restrictions were eased at the plant.
The plant’s rigorous COVID regulations caused an 11.4% year-over-year decline in November income
The employer then begged the staff to stay, promising them a bonus that was four times the present amount. Additionally, it made new hires but later broke its promise, sparking violent upheaval. The employees were subsequently told to depart.
The plant’s rigorous COVID regulations caused an 11.4% year-over-year decline in November income. In a statement, Apple also acknowledged that manufacturing was hurting and that customers would have to wait longer to receive their devices. Notably, the factory is the largest iPhone maker. For the crucial holiday quarter, some Wall Street experts lowered their projections for iPhone shipments.
Chinese health officials and government advisers seized the chance and employed Gou’s letter to argue that the government should move more quickly to relax its strict COVID-19 regulations. China eased a number of regulations earlier this week, allowing for home quarantine, flexible testing requirements, and essentially doing rid of the health codes people had to display on their phones to enter public locations.