• China’s electric carmaker Nio has ceased production.
• Foxconn’s industrial park has been locked down.
• COVID-19 restrictions have shut down its two Hefei factories.

Due to COVID-19 restrictions, China’s electric carmaker Nio has ceased production, and Foxconn’s industrial park has been locked down.

After local news outlet 36Kr reported that COVID-19 restrictions had shut down its two Hefei factories, Nio stated on Wednesday that production had been “temporarily ceased.”

The 13th-ranked Chinese electric vehicle maker said the disruption would “affect production and delivery plans”.

On Monday, Nio apologized for delayed deliveries, which declined 7.5 percent in October compared to September.

Nio shares slumped 7.5 percent to 75.50 Hong Kong dollars ($9.62) on Wednesday after the latest delays.

The Zhengzhou Airport Economy Zone, which houses a Foxconn iPhone manufacturing, claimed it would ban residents from leaving and only allow licensed vehicles on the highways until November 9.

Zhengzhou, the capital of central Henan province, recorded 64 cases the day before.

Foxconn manufactures 70% of iPhones at its Zhengzhou factory, employing 200,000 people.

Foxconn and Apple did not respond to requests for comment, and the industrial park did not indicate how the restrictions may affect them.

After workers complained about COVID-19 preventative measures and treatment, Foxconn has worked to retain staff and ease tensions.
Foxconn offered big bonuses to keep workers after many left.

China’s “dynamic zero-COVID” strategy, which seeks to eradicate the virus at any cost, has persisted despite rising economic and social costs and the rest of the world’s acceptance of it.

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