Since the news broke that Foxconn plans to move out of its factories on the mainland, questions have begun to arise about China's economic development model. Especially in the past three years, Foxconn has encountered a lot of trouble, and last year's investigation turmoil has made Foxconn's situation more and more difficult. Against this backdrop, Foxconn has accelerated the pace of building factories in India, Vietnam and other places, and further reduced production capacity in Chinese mainland. This trend is not limited to Foxconn, but also foreign companies such as Apple and Samsung have begun to shift their production lines, and foreign companies seeking stability are increasingly reluctant to withdraw from China. At this time, Foxconn continued to make efforts to set up a chip packaging and testing company in India, and the consideration behind this decision was obviously not a simple cost factor.
However, this shift of capacity has had a huge impact on Chinese mainland's economy. Taking Foxconn's factory in Zhengzhou as an example, just one factory created 1172. for Zhengzhou in 2022The GDP of 800 million yuan contributes to nearly two-thirds of the GDP of Henan Province. At the same time, Foxconn's presence in Zhengzhou has also driven the surrounding large and small factories, and the entire Zhengzhou almost completely relies on Foxconn's support. If Foxconn moves out of the factory, the consequences are unimaginable.
The impact of the transfer of production capacity by foreign companies on the local economy is not limited to GDP. For families with mortgages and car loans, their lives will change dramatically once their jobs are no longer needed. Such a shift would have a huge impact on the entire job market and social stability.
Moreover, the transfer of foreign-funded enterprises has a considerable impact on the ** chain. This is not only because of the reduction in the production capacity borne by foreign-funded enterprises themselves, but also because the upstream and downstream industrial chains driven by them will also be affected. The impact is not limited to the corporate level, but also to society as a whole.
China has made tremendous achievements in economic development over the past 30 years, mainly due to China's adherence to the development model centered on economic construction and the granting of sufficient respect and preferential treatment to private enterprises and foreign-funded enterprises. However, once we change this development model, we risk losing what we have gained.
Foxconn's behavior is a wake-up call for us. If we can't stick to the development model of the past, the departure of foreign-funded companies like Foxconn will become the norm. This will not only have a serious impact on the job market, but will also cause us to lose the technical and managerial experience brought by foreign companies.
As the old saying goes: "No one is perfect, and no gold is perfect." This old adage speaks to a very real problem – time and limitations doom nothing to be absolutely perfect. As Foxconn's decision to move out of Chinese mainland became an irreversible fact, we began to realize the passivity of our decision and the shortcomings of our original development model. Gou took Foxconn's decision as a lesson to us, reminding us not to stagnate and be complacent because of our current achievements, and that we must actively think and readjust our development course to meet current and future challenges.
Foxconn's decision to move out of Chinese mainland has sparked a rethinking of China's development model. This decision not only has a significant impact on China's economy, but also exposes problems that we have temporarily ignored in the process of reform and opening up. We must realize that economic development is a dynamic process that requires constant study and adjustment. No longer passive recipients, we need to be proactive in facing challenges, seeking new economic growth points, cultivating local enterprises, and attracting foreign investment to maintain healthy economic development. Only by maintaining our ability to adapt to change can we remain competitive in the face of change and ensure the prosperity of our country and the well-being of our people.