Apple manufacturing partner Foxconn has shut down its operations in Vietnam for three days as a result of anti-China protests over oil drilling.
China recently began drilling for oil near to the Paracel Islands in the South China Sea. The problem? While the islands are controlled by the People’s Republic of China, they’re claimed by both Vietnam and Taiwan. The disputed ownership has prompted protesters in Vietnam to ransack factories near to Ho Chi Minh City.
The violence has already forced manufacturers for Nike and Adidas, as well as Walmart, to temporarily halt productions. Now Foxconn has done the same –giving its workers in Vietnam a three-day leave of absence starting Saturday to “ensure [their] safety.”
At least 21 people have reportedly been killed so far in the violence.
Along with Pegatron, Foxconn is Apple’s primary supplier and assembler, responsible for working on devices including the iPhone and iPad. It’s not know how much of that work is accomplished in Vietnam, thereby making it difficult to say what the knock-on effects could be for Apple if protests continue.
- Source Financial Times