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iPhone maker Pegatron halts Shanghai production over COVID

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="The logo of Pegatron Corp at Pegatron headquarters in Taipei, Taiwan, 11 November 2020. David Chang, EPA-EFE/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/business/04/13/pegatron-epa-efe-4132022.jpg"/><figcaption>The logo of Pegatron Corp at Pegatron headquarters in Taipei, Taiwan, 11 November 2020.<em> David Chang, EPA-EFE/File</em></figcaption></figure></div><p><br/>BEIJING - Key iPhone maker Pegatron has halted operations at two subsidiaries in the Chinese cities of Shanghai and Kunshan, as global supply chains feel the pinch of Beijing&#x27;s strict zero-COVID measures.</p><p>The business hub of Shanghai has become the heart of China&#x27;s biggest COVID-19 outbreak since the virus surfaced more than two years ago.</p><p>The city of 25 million has remained almost entirely locked down since the start of the month.</p><p>&quot;We have temporarily suspended work,&quot; said Pegatron in a filing to the Taiwan Stock Exchange on Tuesday.</p><p>The Taiwanese firm said it &quot;actively cooperates with local authorities&quot; and would try to resume operations as soon as possible.</p><p>The suspensions apply to two of its subsidiaries, in Shanghai and nearby Kunshan city.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/01/27/22/apples-iphone-retakes-top-spot-in-china-smartphone-market-research">Apple&#x27;s iPhone retakes top spot in China smartphone market: research</a></li>	<li><a href="https://news.abs-cbn.com/business/03/08/22/apple-expected-to-launch-new-low-cost-5g-iphone">Apple expected to launch new low-cost 5G iPhone</a></li></ul><p>Stay-at-home orders and stringent testing rules have strained supply chains in and around Shanghai, home to the world&#x27;s busiest container port and a critical gateway for foreign trade.</p><p>China reported nearly 28,000 local virus cases on Wednesday, the vast majority in Shanghai.</p><p>Many factories have been forced to halt operations as virus cases have surged, while some staff have been living in their workplaces as businesses struggle to operate.</p><p>Pegatron&#x27;s suspensions mark the latest blow to Apple, which has seen disruptions at other suppliers&#x27; assembly lines in recent months as Chinese cities struggle to curb virus outbreaks.</p><p>In March, another major supplier Foxconn halted operations in the Chinese tech hub of Shenzhen.</p><p>Foxconn has &quot;resumed fundamental operations&quot; in Shenzhen as of late March, the company said.</p><p>Chinese authorities have struggled to maintain the flow of goods across the country as tough virus controls slow movement.</p><p>A Transport Ministry circular issued late Tuesday barred the &quot;blocking of road transportation&quot; vehicles and personnel, ordering more efficient Covid-19 screening along transport routes.</p><p>Anxious about the spring farming season and food supplies, officials in virus-hit areas such as the northeastern province of Jilin have also issued travel passes to let agricultural workers return to farmland on chartered buses.</p><p>&quot;The Chinese economy has been facing a rising risk of recession since mid-March&quot;, Nomura analysts warned this week, citing severe disruptions to the delivery of exports, with coastal areas hit hard by controls to rein in the virus.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/09/22/apple-upgrades-low-end-iphone-se-with-5g">Apple upgrades low-end iPhone SE with 5G, and high-end Mac Studio computer with faster chip</a></li></ul><div><strong> RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1643305" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><div> </div>

Key iPhone maker Pegatron has halted operations at two subsidiaries in the Chinese cities of Shanghai and Kunshan due to Beijing's strict zero-COVID measures.