Armstrong Economics Blog/China Re-Posted Nov 21, 2022 by Martin Armstrong
Apple iPhone 14 production slowdown from the Foxconn manufacturing plant in China continues. A high percentage of workers fled the world’s largest iPhone factory as soon as the lockdown went into effect. Reports state that the site, only weeks ago, that Foxconn looked like an abandoned center piled high with workers’ belongings as the government simply tossed all dissenters’ possessions out of windows to be discarded. That is how quickly people had to flee. Foxconn had to recruit 100,000 new employees after the incident.
The Chinese recall horror stories from past lockdowns, only a few months ago, where food and aid were not available, and the government could not properly ration essentials.
China’s business confidence survey from October showed that 55% of companies lost confidence in doing business in China in the short term. The Zero COVID policy is scaring business from China. Yet, China’s refusal to forego COVID restrictions points to a bigger problem. The banks are in the midst of a liquidity crisis, printing money is not an option, and lockdowns are an effective way to control the population’s movement.