Beijing has issued a slew of executive orders which have already been putting a strain on the domestic economy. Besides, China’s zero COVID policy deals a blow to manufacturing facilities and supply chains. China owes its economic prosperity and efficiency to large Western companies that built their own manufacturing facilities and provided jobs to the population. Willing to reduce their dependence on China, top Western companies are winding down their factories and relocating production to other countries. So, China’s authorities who credit dazzling economic success to their policies will soon be discouraged by their short-sightedness.
Apple Inc. is pushing ahead with its plans to move a chunk of its production beyond China. In its address to partners and suppliers, the US high-tech behemoth called on them to set up iPhone assembly facilities in other Asian countries, in particular India and Vietnam. Apple also expressed its discontent with Foxconn Technology Group in Taiwan. The iPhone manufacturer had to make a forced decision in light of tough restrictions re-imposed in China during the COVID resurgence. Both manufacturing businesses and the population vented their anger in nationwide clashes. Apple’s huge assembly factory in Zhengzhou also had to obey the government’s directive. The shutdown sparked off riots among its employees, disrupted production, and curtailed the company’s sales revenue.
It is hard to say when exactly Apple will get rid of its dependence on China. Nevertheless, the company has established the goal of sustaining robust production rates and deliveries. According to the insider information obtained earlier, iPhone manufacturing in China could shrink at least by 30% due to logistic bottlenecks in delivering components from Foxconn. The company failed to revive its assembly process in Zhengzhou by the end of November.
