Can a Plant Bordering Shanghai Operate Profitably at 60% Capacity?

©iStock/Robert Way

Some production capacity is better than none.  As is the case with Foxconn Interconnect Technology, a unit of Taiwan-based Foxconn that makes data transmission equipment and connectors, which has kept a plant open in Kunshan, which borders Shanghai, in a closed loop but is only able to run at 60% of capacity.

In China's race to stop the spread of COVID-19, it's clogging highways and ports, stranding workers and shutting countless factories – disruptions that are rippling through global supply chains for goods ranging from electric vehicles to iPhones.

China has tried to cushion the impact of the curbs by keeping ports and airports running and encouraging closed-loop manufacturing.

As many feel:  "A problem in China could be a problem for the global economy."