A key supplier to Apple Inc. and a dozen other tech giants plans to split its supply chain between the Chinese market and the U.S., declaring that China’s time as factory to the world is finished because of the trade war.
Hon Hai Precision Industry Co. Chairman Young Liu said it’s gradually adding more capacity outside of China, the main base of production for gadgets from iPhones to Dell desktops and Nintendo Switches. The proportion outside the country is now at 30%, up from 25% last June.
That ratio will rise as the company -- known also as Foxconn -- moves more manufacturing to Southeast Asia and other regions to avoid escalating tariffs on Chinese-made goods headed to U.S. markets, Liu told reporters after his company reported financial results.
“No matter if it’s India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each,” Liu said, adding that while China will still play a key role in Foxconn’s manufacturing empire, the country’s “days as the world’s factory are done.”
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Update #1: China's days as 'the world's factory' are over says iPhone manufacturer (The Telegraph)
Update #2: Foxconn says trade war means China can no longer be 'the world's factory' (Apple Insider)
WNU Editor: I disagree. China's manufacturing sector is very resilient, and it is bouncing back very quickly from the impact of the pandemic. And if the Democrats win the White House, they have already signalled to China that many of the restrictive trade measures that President Trump has imposed will be rescinded or scaled back.
5 comments:
Wnu.. I think you're wrong. Imagine the social justice warriors coming for companies that still do business with China, while Chinese push minorities into trains.
But then again. Only Black Lives Matter, I guess, or whatever the population is tricked in this time while the Muslim population in China is eradicated and has dropped by 84% according to the BBC.
But George Floyd is an easier to grasp, get behind cause. "Forced sterilisation in China and ethnic cleansing" is just not that interesting to Democrats, can't move people to civil unrest ahead of an election.
Oh and Democrats certainly don't want to agree with Trump who called China out for years. No no that can't happen. So people keep dying by the millions. Thanks, Pelosi. You did it again
Well, part of the increase to an unprecidented 67% labor participation rate under the evil Trump was due to the tariffs. I'm sure the American recipients of this situation weren't complaining.
Ya know, a lot of what you say (which I agree with) takes a lot of stupidity to make happen. I feel the world is going the wrong direction. However, history proves we survive, but how many people will die!?
WNU,
Very sorry, but I disagree with you. The worm is in the fruit. Even with a democrat presidency, the risk is growing for the business. What can it be in the mind of a CEO when it come for a possible war with China? China put itself in a corner, Xi Jimping fault.
If Putin hacked Democrat emails fir the 1st time (last time was a DNC inside job), it won't do anything.
Putin would be better off having people tail Democrats who are part of the 535 and other important Democrats and filming them with their mistresses, rent boys and high end call girls.
A true believer will tell you sex is just sex. Let us assume that is true. But to have the off books sex oftentimes takes off books cash, lots of it. And you will find corruption.
If people are jealous of other people's houses they are also jealous of other people;s abundant sex lives gain through legal and illegal monies. Especially for people, who on paper do not have enough money for 2 households.
When democrats are spending 3 or 4 times the average American family income on their aristocratic private affairs (& regular life), people will be upset. People are upset because they are scrambling and these 'important' people are in government, who finances look perfect on paper, are spending way more to afford this crap.
Last I checked we are still primates and still subject to envy and fairness.
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