Recently, the Ministry of Commerce of the People's Republic of China has called on many foreign companies investing in China to report directly to the Ministry of Commerce if they encounter major difficulties and setbacks, and our Ministry of Commerce will solve the difficulties of these foreign enterprises as soon as possible. Now that we see that the wind direction has changed, the reason why we can say such things has a lot to do with the fact that many foreign companies are constantly withdrawing from China. For example, HP has deregistered its Shanghai branch, Dell has also deregistered its branch, and Nikon has closed its Wuxi factory in 2017, and now, he has also deregistered its branch in China.
Think about the many people who have worked in these foreign companies for 5, 10, or more than 10 years, and now they are suddenly unemployed and can't find a job. At a time when foreign companies are constantly withdrawing from China, what is the extent of our economic environment? Think about it, if you open a restaurant, if your employees' salaries are rising every year, from a few hundred dollars at the beginning to 5,000 yuan a month now, are you overwhelmed? While our labor costs are increasing, our business environment is getting worse and worse, and the cost of land is not very cheap, and there are no preferential taxes.
In this case, many foreign companies still put profits first, capital is profit-seeking, and coming to China is to make money, not a welfare institution, nor to serve the people, capitalists want to make money, so when the cost is increasing and profits are constantly being compressed, then capital chooses to withdraw, which has become an inevitable choice. What I want to say here is that it is not uncommon for many foreign companies to move to Southeast Asia, to India, and even to the United States, Japan, and South Korea, and more companies will continue to move out in the future. Of course, there are some people who say that the amount of foreign investment in us is increasing, and the number of foreign-invested enterprises is showing double-digit growth.
However, sometimes if you look at the data, combined with the actual number of foreign companies relocating, and the current situation of layoffs and unemployment, you suddenly find that the withdrawal of foreign companies seems to have become a trend, and we may hear such news in the future. Are you saying that China has lost its attractiveness? I think China is also the world's largest manufacturing base and the largest labor market. So why is there a continuous withdrawal of foreign capital today, there are many things in the ideological field, things in values, and a kind of subjective identity of the country, and so on. However, in China, costs are rising and profits are being squeezed, which is a major value.
Many foreign companies in China, its profits are less than before, and some even lose money, so for them, migration is an inevitable thing. For example, Carrefour, many people say that Carrefour is gone in China, but if you are in the Middle East, in the Americas, you can see that there are a lot of Carrefour, it does not mean that the company has gone bankrupt, but when there is no huge interest rate difference to make money, he will naturally choose to move out. Therefore, the withdrawal of foreign companies from China is not only the loss of attractiveness in some aspects of China, but also the consideration of other aspects.
Of course, there are some inconvenient aspects of this, but the most important thing is that at this time when profits are decreasing and labor costs are increasing, it is inevitable to choose to move out. If you're the boss and your restaurant's staff are getting their salaries growing, is there any reason for your restaurant to keep going? The same is true for foreign companies. What do you think about the continuous removal of foreign companies from China and the continuous cancellation of foreign companies, you can discuss them in the comment area.