Who shuttered Foxconn’s Apple factories?

Who knows? More to the point, who will give them the green light to resume operations?

From “China’s Shenzhen denies blocking Apple supplier Foxconn from resuming production,” which moved over the Reuters newswire Sunday morning:

Local Chinese authorities have not blocked Apple supplier Foxconn from resuming production amid a coronavirus outbreak, they said in a statement on Sunday, denying an earlier report in the Nikkei Business Daily.

The Nikkei, citing four people familiar with the matter, said here on Saturday that public health experts had carried out inspections at Foxconn’s factories and told the company that there was a “high risk of coronavirus infection” at the facilities, making them unsuitable for a production restart.

Shenzhen’s Longhua district, where Foxconn’s largest factory is located, said in a statement on its official WeChat account on Sunday that those reports were untrue and that it was still conducting checks, adding that the company would restart production once inspections were completed…

Foxconn could see a “big” production impact and shipments to customers including Apple face disruption if the Chinese factory halt extends into a second week, a person with direct knowledge of the matter told Reuters earlier this week.

My take:  The safety procedures proposed for Foxconn’s iPhone assembly lines—mandatory face masks, periodic temperature checks and special dining procedures—seem necessary but not necessarily sufficient to protect thousands of assemblers working shoulder to shoulder in a confined space during a virus outbreak.

See also: Apple suppliers shouldn’t make promises they can’t keep

5 Comments

  1. Gregg Thurman said:

    Here come the “scare” stories, right on time.

    2
    February 9, 2020
    • Aaron Belich said:

      Buy the dip…

      Buy the dip…

      Buy the dip…

      —But when!?

      0
      February 9, 2020
  2. Jerry Doyle said:

    My take: Your synopsis in “your take” is on target. The Chinese Communist Party is rooted deeply in Chinese companies and involved in foreign companies’ operations.

    Xi Jinping is under a microscope and Chinese citizens are on the verge of unleashing vociferous blame on someone. Xi and the CCP are the culprits. So while the CCP, with Xi’s blessings, most likely are behind Foxconn’s resumption of production, let it be Foxconn to take the heat; not Xi and the CCP.

    You see, this problem goes beyond the coronavirus. This problem goes beyond the associated illnesses with that virus. This problem goes beyond the concomitant deaths from the virus. It will extend into a greater problem going forth. That problem involves a “hit” to the Chinese’s economy; and, to Chinese citizens.

    My biggest fear is a myriad of Chinese economic problems resulting from mediocre, if not poor, CCP policy making relative to this entire faux pas dealing proactively with this disease. The CCP again was slow to respond to the problem.

    I’m reminded of economist Milton Friedman’s straightforward advice given to a high Chinese government official on how to instill instantly market discipline in an economy dominated by the state. “…. To cut the tail off the mouse, don’t do it inch-by-inch,” said Friedman to his Chinese host. “…. To reduce the pain, the whole tail should be cut off at once.” The Chinese host high government official listened intently and politely. The Chinese official paused, and then responded by extending the Friedman’s metaphor to illustrate how such reforms might not be as easy as Friedman envisaged: “…. My dear professor, our mouse has so many tails, we do not know which one to cut first.”

    The single biggest problem preventing the Chinese to move proactively and forcibly, was the lack of proper ideology of health and political education to confront the virus more quickly.

    1
    February 9, 2020

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