Samsung is pulling its production out of China amid the trade war and slowing sales in the country. Photo: Xinhua
Asia Times: Chinese fret as Samsung, other giants leave
Samsung to close key assembly base in Guangdong, while Foxconn may cut production of iPhones
Local officials and workers in China’s Guangdong and Jiangsu provinces may have to brace for lost revenue and jobs as Korean tech giant Samsung has reportedly decided to wind up its last production lines and leave the country for good.
There have been reports that Samsung’s factory in Huizhou city in Guangdong – where some of its best-selling handsets like the Galaxy smartphone series were assembled – will shut down, following similar closures in Shenzhen and Tianjin in northern China.
The Huizhou base kept the local economy ticking during its heyday as it churned out electronic products for Chinese buyers and for export to the US and Europe. But rumors started to swirl right after the Chinese New Year break in February that the factory would lay off workers soon.
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WNU Editor: This exodus is just the tip of the iceberg. China is no longer an attractive place for investment, and certainly not the place to manufacture products for export. India and Vietnam is the place to be, with Vietnam being the big winner.
4 comments:
/Speak nicely and cram a large economic stick...
Wnu exactly. I've noticed this trend for years, and now accelerating under Trump
Xi, the Chinese emperor, wears no clothes and soon cannot even afford them. The housing bubble is in the trillions by now and gets bigger every day the Chinese keep trying to fend it off. Everyone knows about the tens of thousands of skyscrapers built during the rush - often without proper building codes - many empty and abandoned now. They bet BIG on the future, using the failed paradigm "if you build it they will come", well they didn't come and now it's over. Xi has to fall on the sword to save China. I expect him to be gone before 2025. It is too big a failure. China had the chance to do something unbelievable and it was in fact too good to be true and was therefore built on speculation and lies. It will be the single biggest market failure in history and we all have to be ready for it.
Love Trump, hate Trump - it doesn't matter. He will go down as the president who saw the opportunity for the west, the weakness of China and history will remember him for that more kindly than our little parrot even dares to dream.
Well for one thing Trump may go down as the President who put the nail in the coffin for what has passed as democracy since the country's founding so long ago, and that could be a good thing. There is a saying in business, "you cannot run a company by committee", same obviously with a country. Sooner or later it all comes down to countries being run by the oligarchy the only true governing body, some members of which may not even be citizens, the rest is show.
Though it's pretty sad that anyone needed a Trump administration to understand that the President isn't always the one in control.
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