In recent years, there are many foreign-funded enterprises in China, constantly shifting the manufacturing base from China to Southeast Asia and India, including Foxconn, you are also moving some equipment of factory assembly lines across the country to India, from many aspects, you can see that the outflow of manufacturing will become more and more obvious next year. And not long ago, there is a company that is second only to Foxconn for Apple, a foreign-funded enterprise called Pegatron, and it has also begun to transfer its production lines and some employees to India. Why move to India, because now its production is constantly declining. Apple has also made it very clear that if you don't move production to India, you will have fewer and fewer orders in the future.
And Foxconn gave the same tone, if you don't transfer the production line to India, then your future order number will be less and less, and this year's Pegatron's order decline is very powerful, which also leads to Pegatron no matter what the reason, eventually due to the decrease in orders, it must transfer its assembly line production and processing base to India to cooperate with Apple's **chain matching**. You must know that when Pegatron was in its heyday, its annual output reached more than 90 billion, and it can be said to be a king-like existence in Shanghai, because it solved the employment of hundreds of thousands of people in Shanghai, and 8 production lines were running day and night to produce mobile phone accessories for Apple.
At that time, after the introduction of Pegatron Technology in Shanghai, its contribution to Shanghai's GDP also reached 10%. So Pegatron is now going to move its manufacturing pipeline to India, and one of the consequences is that the number of jobs we will continue to decrease, our tax revenue will continue to decrease, and our contribution to the local GDP will be small. This has led to the withdrawal of foreign companies from China, and once this trend is formed, it will pose a very serious challenge to our position as a manufacturing power in the future. Some people say that these foreign-funded enterprises can just go, just leave it to our local enterprises to develop themselves, in fact, if you think about it carefully, foreign-funded enterprises contribute nearly half of the output value to our foreign trade exports every year, and solve a lot of employment.
Taxes, not to mention, if these internationally competitive foreign-funded enterprises have moved away from China, then left to our domestic enterprises, how many of these domestic enterprises can fight, and how many can have a very good impact on foreign trade exports in the world?Therefore, the current enterprises have withdrawn from China, which is a very vigilant phenomenon. And we have also heard Apple threaten to increase India's production capacity to 60% by 2027, which means that after India's production capacity increases, our production capacity in China will slowly decrease, and it may fall to a very low percentage in the future.
For now, Pegatron's move is for orders, in order to be able to keep up with Apple's orders, resulting in the relocation of its factories from China, whether it will all be relocated in the future, it is difficult to say, but once this trend is formed, it will have a very irreparable blow to our manufacturing industry, whether it is from employment, taxation, GDP, as well as our domestic upstream and downstream supporting industrial chain, will have a positive impact.
Therefore, for the current domestic manufacturing industry, in fact, there is already a sign of continuous migration outward, as our domestic can really only look at it, there is no way, because people want to leave, what can we do to solve these problems?There are many things to solve these problems, and there are too many factors involved in it, so I won't repeat them one by one here. Do you think the current trend of companies moving out of China will become more and more evident in the future?Then we can take a look and maybe hear more news from companies next year.