FoxconnAs the world's largest electronOEMEnterprises have relied on the country's reform and opening up policy to grow rapidly in the past few decades. However,FoxconnThe founderTerry GouAfter great success, he began to show an arrogant attitude. He claimedFoxconnBuilding a factory in the mainland is to reward the mainlanders for food and to campaignGovernor of Taiwan ProvinceIn the process, the ambition of "T independence" was exposed. This kind of behavior touches the core interests of the state and leads to the state to be rightFoxconnAn investigation was launched. However, the state is rightFoxconnThe results of the investigation were surprising, and only a fine of 20,000 yuan was imposed on him. Although this is very importantFoxconnIt's just a drop in the bucket, butTerry GouVery dissatisfied, so he decided to take countermeasures.
FoxconnThe rise is a dividend from the country's reform and opening up policy, which has made the company rapidly develop from a small enterprise in Taiwan Province to the world's largest electronics in just over a decadeOEMEnterprise. At its peak,FoxconnThe market capitalization is as high as 500 billion, and the number of employees exceeds one million. However,FoxconnThe founderTerry GouAfter acquiring great wealth, he gradually showed an arrogant attitude. He began to dismiss the doubts of the countrymen, claimingFoxconnBuilding a factory in the mainland is an act of rewarding mainlanders for food. In addition, in the campaignGovernor of Taiwan Provinceprocess,Terry GouIt also openly demonstrated the intention of "T-independence," that is, to obstruct the return of Taiwan Province to the mainland. However, Taiwan Province has always been regarded as an integral part of our sacred territory, thereforeTerry Gou's words and actions involve the core interests of the state, and they will naturally be sanctioned by the state. Therefore, the state pairsFoxconnA formal investigation was conducted, a move that caused a great sensation internationally. However, the results of the survey were surprising, and the state was only rightFoxconnA fine of 20,000 yuan was imposed. ForFoxconnIt's like a drop in the bucket, butTerry GouVery dissatisfied with this investigation by the state, it was decided to take measures to fight back.
According to a number of domestic and foreign countries**ReportedFoxconnAfter being investigated by the state, the pace of withdrawal from the mainland market began to be accelerated. On November 27,FoxconnThe company announced that it will invest 11 billion yuan to build a new plant in India to expand its iPhone production capacity in India. Then, on December 13, the Indian state of Karnataka** officially announced that Hon Hai Group (ieFoxconnof the parent company) will invest an additional $12 billion in Karnataka. Foreign media have issued articles saying,Terry GouHe was very angry with the mainland and was determined to evacuate the mainland and no longer reward the mainlanders with food. For several years,FoxconnIn order to complyApplesThe company has continuously increased its investment in Southeast Asia, and has established a number of factories in India, Vietnam and other places. A few months ago, ** broke the newsFoxconnThe plan is to transfer $300 billion worth of production capacity from the mainland to Southeast AsiaTerry GouHe also made bold remarks, saying that if the mainland is rightFoxconnUnfavorable, thenFoxconnAbility to evacuate the mainland overnight. Therefore,FoxconnThe plan to accelerate the evacuation of the mainland is not unexpected. FoxconnAs a low value-added,Labor-intensive enterprises, which requires a lot of cheap labor. However, in recent years the value of the mainland labor force has multiplied several times, which is a pairFoxconnand other businesses are not friendly. In order to reduce manufacturing costs,FoxconnSooner or later there will be an evacuation of the mainland. The investigation of the state has only acceleratedFoxconnTriggers for evacuation plans. Also, in order to get moreApple orderFoxconnIt is bound to increase investment in Southeast Asian regions such as India to helpApplesReduce dependence on the continental ** chain. Many people in the industry thinkFoxconnThe withdrawal will deal a major blow to our country's electronics manufacturing industry.
Recently, there are a number of domestic and foreign**ReportedScale,FoxconnAfter being investigated by the state, the pace of withdrawal from the mainland market began to be accelerated. On November 27,FoxconnThe company announced that it will invest 11 billion yuan to build a new plant in India to expand its iPhone production capacity in India. This can be considered as:FoxconnSignal to accelerate the evacuation of the mainland. Subsequently, on December 13, the Indian state of Karnataka** officially announced that Hon Hai Group (i.eFoxconnof the parent company) will invest an additional $12 billion in Karnataka. This is further confirmedFoxconnA move to make India a strategic investment location. Foreign media have issued articles saying,Terry GouHe was very angry with the mainland and was determined to evacuate the mainland and no longer reward the mainlanders with food. This is inFoxconnThis is not surprising in the context of increased investment in Southeast Asia. Over the years,FoxconnI've been trying to adaptApples's "de-Sino" strategy to reduce dependence on the mainland by building factories in Southeast Asia. Factories have been built in India and Vietnam to reduce costs and risks. As early as a few months ago, ** was exposedFoxconnNews of plans to transfer $300 billion worth of production capacity from the mainland to Southeast AsiaTerry GouHe also made bold statements, claiming that if the mainland is rightFoxconnUnfavorable, thenFoxconnAbility to evacuate the mainland overnight. Therefore,FoxconnThe plan to accelerate the evacuation of the mainland is not unexpected. FoxconnAs a low value-added,Labor-intensive enterprises, there is a greater demand for cheap labor. However, in recent years, the value of mainland labor has multiplied dozens of times, rightFoxconnand other businesses are not friendly. Also, in order to get moreApplesOrders,FoxconnIt is inevitable to increase investment in India and other Southeast Asian regions to helpApplesReduce dependence on the continental ** chain. Some industry insiders believeFoxconnThe withdrawal will have a major impact on China's electronics manufacturing industry. However, I don't fully agree with this view. FoxconnThe evacuation will cause millions of mainland employees to lose their jobs and have a certain impact on the economic development of some places. However, this impact is limited. Domestic manufacturing companies such as BYD and Precision Luxshare are fully capable of replacing them in a short period of time. For example, sanctions in the United StatesHuaweiAt the beginning,FoxconnTerminated withHuaweiofOEMcooperation, and BYD helpsHuaweiA higher quality mobile phone was manufactured. Therefore,FoxconnThe effects of the evacuation are manageable. At present, China is promoting the transformation of manufacturing industry to intelligent manufacturingFoxconnThe value of such low-value-added enterprises is decreasing. We should strongly support things likeHuaweiSuch a highTechnologyenterprises, to help the country completely get rid of the shackles of low-end industries, to achieve a great revival. In this way, the Chinese people will be more confident. If you agree with this view, please give it a thumbs up!