The news: Protests against China’s zero-COVID lockdowns may have started in factory hubs but are now spreading across city centers with possible geopolitical and economic repercussions, per Bloomberg.
How we got here: China’s strict COVID-19 policy has led to the most significant challenges to the Communist Party since the Tiananmen crisis 30 years ago.
Analyst take: “People in China have been very patient with COVID lockdowns during the past three years. In spite of some degree of relaxation, changes haven't come fast enough,” said Man-Chung Cheung, China and Japan research analyst for Insider Intelligence.
“Frustrations have been building up, especially in knowing that the rest of the world has taken significant steps to return to normalcy. For Chinese citizens, they just don't see an end to these cumbersome lockdowns. The fact that they haven't been given any knowledge as to when and how the zero-COVID policy will end has only made things worse.”
Economic repercussions: The turmoil at Foxconn’s factories will result in a shortfall of nearly 6 million iPhone 14 Pro units for 2022, sources told Bloomberg.
What’s next: Apple has said it’s working closely with Foxconn to restore operations, and both companies have expressed a commitment to ensuring worker safety. Mounting protests, however, are well beyond Foxconn’s control.
This article originally appeared in Insider Intelligence'sConnectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
11 Times SquareNew York, NY 100361-800-405-0844