As COVID cases increase in numerous major cities throughout China, the country is battling its worst outbreak since the summer.
As a result, millions of citizens are being asked to stay at home or taken to centralized quarantine facilities per the nation’s strict ‘zero-COVID’ policy. It has had a significant impact on business operations in China.
As reported by VOA, Yum China, operator of the KFC and Pizza Hut chains, said on October 2 that COVID forced 1,400 of its roughly 12,400 shops in the nation to close or offer reduced services in October temporarily.
In its quarterly earnings report, the company said, “Nationwide, consumers are traveling less and reducing expenditures. … The COVID situations remain uncertain, with regional outbreaks continuing to impact our operations.”
Shares of Nio, the 13th-largest electric vehicle manufacturer in China by sales, also fell on Wednesday after the company confirmed that production had stopped at its two plants due to restrictions put in place throughout October to fight the pandemic.
The effects were also spread in Zhengzhou when Foxconn, a prominent Apple iPhone factory, tried to appease workers who were furious because of the limitations policy.
It said, “There’s little prospect of a lasting change as long as ‘zero-COVID’ remains the national goal.”