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Yum China, BYD say China’s COVID curbs have impacted operations

SHANGHAI (Reuters) – Chinese businesses from automaker BYD to KFC operator Yum China say their operations have already been hit by the country’s latest COVID-19 curbs, with more disruption expected as case numbers rise.

The impact on companies comes as China battles its worst outbreak since the start of the coronavirus pandemic in early 2020. It posted a steep jump in daily COVID infections on Tuesday, with new cases more than doubling from a day earlier to a two-year high.

Yum, the operator of KFC and Pizza Hut restaurants in China, said late on Monday during a regular earnings briefing that its operations had been significantly impacted by the latest outbreaks, and same-store sales fell 20% year-on-year in the first two weeks of March.

BYD, headquartered in Shenzhen where most companies have been told to ask staff to work from home, said that there had been some impact on production at its site in the city.

“We are actively coordinating a response and carrying out epidemic prevention and control as required by the government,” the company said.

Many provinces and cities across the country have been carrying out mass testing, with some shutting down public transport and cordoning off apartment blocks and office buildings.

Other companies that have reported disruptions include Chinese flash storage company Netac Technology. It said some shipments would be delayed as it had to suspend work at its Shenzhen facility. Meanwhile Apple (NASDAQ:AAPL) supplier Lens Technology said its unit in Dongguan city had stopped production.

iPhone assembler Foxconn, Toyota and Volkswagen (DE:VOWG_p) also said on Monday that they have had to shut factories.

Source : Reuters

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