How companies are affected by 'zero COVID' protests in China

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International companies with ties to China are closely monitoring the sudden surge of protests in the country over the government's 'zero COVID' stance — particularly if the unrest leads to any policy changes.

Axios' Bethany Allen-Ebrahimian writesto respond to the protests by easing restrictions, Apple would be among the first to benefit.significant supply shortages in its iPhone line due to ongoing lockdowns and labor unrest at a key manufacturing facility.

Wedbush Securities analyst Dan Ives said Monday in a research note that "many Apple stores" have only 35% to 40% of typical inventory of the iPhone 14 Pro. "The zero China Covid policy has been an absolute gut punch to Apple's supply chain with the Foxconn protests in Zhengzhou a black eye for both Apple and Foxconn," Ives wrote.International companies with the biggest investments in China face the most risk if the country refuses to budge, Niagara University economist"Economically there are incentives for companies to move production out of China in order to save production costs," Lee says.

 

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