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Covid-19 Outbreak Shuts Down Some China Factories, Including Apple Supplier

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Chinese rules aimed at stopping a Covid-19 outbreak in the technology hub of Shenzhen have led to production halts affecting at least one Apple Inc. supplier, in the latest hit to global electronics supplies.

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A number of manufacturers including Foxconn Technology Group, a major iPhone assembler, said they were halting operations in Shenzhen in compliance with the local government’s policy. 

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The government placed the city into lockdown for at least a week and said everyone in the city would have to undergo three rounds of testing after 86 new cases of domestic Covid-19 infections were detected Sunday. 

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Foxconn, formally known as Hon Hai Precision Industry Co., said it didn’t know when its factories could resume production.

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A shortage of electronics has contributed to a rise in prices around the globe including in the U.S., where inflation in February hit a 40-year high of 7.9%. 

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The majority of iPhones, however, are made at a factory in central Henan province. Foxconn said it would aim to keep up production by shifting work to other plants in China. 

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