Foxconn told to postpone resumption of iPhone manufacturing over coronavirus fears. China could extend Lunar New Year holiday. Analysts slash global growth forecasts over coronavirus outbreak.
An Apple Another Day
Foxconn, the world’s biggest iPhone assembler, was supposed to resume production on Monday. But its plans have been called off by Chinese authorities due to worries surrounding the coronavirus outbreak. Public health experts said Foxconn’s factories faced “high risk of coronavirus infection” after conducting on-site inspections.
This further worsens supply chain disruptions for electronic companies, including Apple, Amazon, Google and Huawei. [Nikkei Asian Review]
There’s no sign of an end to concerns as the prospect of another extension of suspension of work in Chinese cities looms. Chinese authorities could extend the Lunar New Year holiday till February 17th in some key provinces as the country battles a deadly coronavirus outbreak that has, officially, claimed over 800 lives. An extended suspension of work in China, “the world’s factory”, could further strain global supply chains, with the reverberations being felt around the world. [ET]
Thus, China’s battle against the coronavirus is having implications on the global economy. So much so that most analysts have started lowered global growth forecasts. Some even argue GDP growth this year will see its weakest pace since the 2007-2008 financial crisis. [BS]
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