China’s strict epidemic prevention and control policy, economic downturn, and many other factors have gradually led multinational companies to withdraw from China.

The world’s largest Foxconn iPhone assembly plant in Zhengzhou City, Henan Province, imposed strict controls due to the COVID-19 pandemic. A large number of employees were scared and ran away.

Foxconn revised down its growth forecast for the fourth quarter. Apple expects iPhone 14 Pro and iPhone 14 Pro Max shipments to be lower than initially expected.

Major supply chain manufacturers start adjusting their market. For example, Apple has increased the proportion of manufacturing in India. Vietnam is a popular option for major manufacturers to transfer their positions.

Apple said it would suspend the purchase of chips produced by China’s Yangtze River Storage. Apple CEO Tim Cook said this week that Apple intends to buy chips from a factory in Arizona.

Yangtze River Storage was hit hard after Washington announced additional export controls in October.

Political tensions between countries with China and strict epidemic policies have caused companies to gradually abandon China to diversify supply chains.

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