It's too late to regret it! Foxconn continues to make efforts, and Terry Gou's lesson is thought-provoking!
Text |Observers.
On the night of regret, Foxconn continued to exert force, and Guo Taiming taught us a lesson!
Foxconn's intention to relocate its factories to the mainland is actually a well-known thing. Especially in the past three years, due to this special period, Foxconn has encountered great problems, coupled with last year's research turmoil, which also made Foxconn very confused, and it is in this context that Foxconn has accelerated the speed of building factories in India, Vietnam and other regions.
For example, in December last year, Foxconn announced that it would invest more than 10 billion yuan to build a new factory in India; In March of the previous year, Foxconn announced that it would invest 700 million yuan to build a new factory in India. In short, a clear trend is that in the past two years, Foxconn is gradually reducing its production capacity in the mainland and transferring more orders to overseas regions.
In fact, not only Foxconn, but also foreign-funded enterprises such as Apple and Samsung have also moved their production lines to the mainland in recent years, because in addition to the increase in labor costs in the mainland, it is more due to changes in the general environment, which makes foreign-funded enterprises seeking stability retreat.
It is worth mentioning that not long ago, Foxconn continued to innovate and announced that it would invest 37.2 million yuan to cooperate with an Indian company to set up a chip packaging and testing company in India.
It stands to reason that chip packaging and testing enterprises have higher requirements for the quality of labor and higher profits, so under normal circumstances, chip packaging and testing enterprises should be placed in the mainland, and the quality is relatively safe. But now, Gou has chosen to cooperate with Indian companies, and the reason behind it is obviously not just the cost factor.
To be honest, as far as the current environment is concerned, with the continuous transfer of production capacity of foreign-funded enterprises such as Foxconn, the pressure on ordinary people can be imagined. In particular, many families are still burdened with mortgages and car loans, and when the factory no longer needs employees, the lives of these people are likely to change dramatically.
In addition, we cannot underestimate the impact of the transfer of foreign factories. Taking Foxconn as an example, in 2022, Foxconn's single factory in Zhengzhou created 1172 for ZhengzhouWith a GDP of 800 million, nearly two-thirds of the GDP of the entire Henan Province is contributed by Foxconn. At the same time, Foxconn took root in Zhengzhou, and also drove the surrounding large and small factories, especially the factories in Zhengzhou, almost the entire economy of Zhengzhou, is the contribution of Foxconn, if Foxconn wants to move out of the factory, the consequences can be imagined.
But unfortunately, although we are well aware of the importance of Foxconn to the national economy, due to some reasons that should not be said publicly, Foxconn's heart to move out has been firm to the point of regretting it too late. To put it bluntly, Guo Taiming taught us a lesson this time: if we do not adhere to the past development model, the withdrawal of foreign-funded enterprises such as Foxconn will become the norm.
To put it bluntly, in the past 30 years, the reason why China's economy has been able to achieve rapid development is because we have adhered to the development model centered on economic construction, attached great importance to private enterprises, and given enough respect and preferential treatment to foreign-funded enterprises, so that we have achieved these 30 years of brilliant achievements. However, if we change the direction of development, I am afraid that all the brilliant achievements will be a thing of the past and the gains that have been made will be lost, so we must be vigilant.
To put it bluntly, the good days of modern Chinese who have no worries about food and clothing are actually more than ten years ago. Stop squeezing, eat and hold on, and go back to the past. What do you think?