Yum China, BYD say China’s COVID curbs have impacted operations -Breaking
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© Reuters. FILEPHOTO: This is a Pizza Hut location in Shanghai on September 18, 2018, 2018. REUTERS/Aly Song2/2
SHANGHAI, (Reuters) – Chinese companies, from BYD automaker to Yum China KFC operator Yum China claim that they have been affected by China’s recent COVID-19 curbs. More disruption is expected as the case number rises.
China faces its most severe outbreak of coronavirus since early 2020. This will have a significant impact on businesses. On Tuesday, the number of daily COVID infection cases rose sharply from one day earlier to two years highs.
Yum in China is the operator for KFC and Pizza Hut. It stated late Monday that it had suffered significant losses from the recent outbreaks. Same-store sales dropped 20% in March’s first two weeks.
BYD is headquartered in Shenzhen, where many companies are told to have their staff work remotely. However, the company said there was some effect on its production site.
The company stated that it was actively working with the government to coordinate a response.
Mass testing has been conducted in many provinces and towns across the country.
Netac Technology in China, which is a flash storage provider, also reports disruptions. Some shipments might be delayed because it was forced to suspend its Shenzhen factory. Lens Technology, an Apple supplier (NASDAQ:), said that its Dongguan unit had been shut down.
Foxconn (DE:), Toyota, and Volkswagen (DE) all stated Monday that their factories had been forced to close.
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