China jobs impacted after Huawei row
Flex Ltd, a settlement manufacturer for Huawei, locked in a dispute with the Chinese tech giant over approximately $100m well worth of property, said the marketplace situation changed into affecting some of its jobs inside us of a. Chinese financial magazine Caixin reported past due Sunday that some 10,000 Flex jobs in China were expected to be reduced as two primary factories in Changsha and Zhuhai had stopped work because of its row with Huawei.
While declining to touch upon the record, a Flex spokesman stated: “After careful review of the marketplace scenario and patron need, we’re providing impacted personnel activity possibilities within Flex Zhuhai Industrial Park and different Flex locations. The spokesman declined to say what number of personnel have been affected but denied it became a layoff. A Flex source said the company employs a few 50,000 people in China, with Zhuhai being its largest base.
Huawei final month said Flex had withheld some 700m yuan ($100m) well worth of Huawei items in its Zhuhai factory after the USA positioned Huawei on a trade blocklist in mid-May, causing losses for the Chinese company. At the time, Flex had said it become “actively working” with Huawei to “find a together agreeable manner ahead” after their partnership had “lately been impacted with the aid of unforeseen challenges as a result of the United States/China change situation.
Dually based inside the US and Singapore, Flex is a few of the international’s largest electronics manufacturers and competes against Foxconn Technology in providing manufacturing services for Huawei products which include smartphones and 5G base stations. In June, Foxconn halted manufacturing lines for several Huawei telephones after the company reduced orders. Later that month, the Taiwanese business enterprise denied rumors that it deliberate to withdraw from mainland China amid uncertainty resulting from the United States-China change struggle.
Cathay Pacific reviews profit but warns of HK protests effect.
Hong Kong’s flagship airline Cathay Pacific has warned that increasingly more violent protests in the economic hub had hit reserving call for. Announcing meantime consequences on Wednesday that confirmed the airline inside the black after big losses within the first 1/2 of final year, Chairman John Slosar warned of the further impact on the commercial enterprise in reaction to the unrest and the global exchange tensions.
“Geopolitical and exchange tensions are anticipated to preserve to affect the worldwide financial system and, in flip, call for air travel and air freight,” he said. “The protests in Hong Kong decreased inbound passenger traffic in July and are adversely impacting forward bookings,” Slosar added.
The previously bothered airline pronounced first-half of profits of one.35 billion Hong Kong dollars ($172m), compared to a lack of 263 billion Hong Kong dollars ($33.5bn) within the same length remaining year. Despite the uncertainty, Slosar stated he still expects to acquire even better outcomes inside the second 1/2 of the yr, as is usual in the aviation enterprise.