New Delhi: – Young Liu, CEO of Foxconn, the company assembling iPhone models for Apple Inc, said that the days of China is known as the ‘Factory of the World’ are numbered. Many of the mega corporates are thinking of other options, to move their manufacturing facilities, from China, in view of the trade war between the United States and China. He claimed that these companies would shift their manufacturing facilities to south-east Asian countries.
Foxconn is increasing the capacities of its manufacturing facilities, located outside China. The production taken by Foxconn outside of China has reached 30%. Foxconn is still having major portion of its manufacturing in China. Liu said that despite this, China would not remain the manufacturing hub of the world in the times to come. The days of China being known as the World Factory are numbered.
There is tremendous displeasure regarding China over the Coronavirus pandemic. Moreover, because of the trade war between the United States and China, many companies from the United States and other countries, have started moving out of China. Since last year, trade war is going on between the United States and China. The trade war has intensified, in view of the Coronavirus pandemic. The United States has already warned that US companies should exit China. Therefore, US companies have started shifting their manufacturing plants elsewhere.
Not only the US companies, even companies from Japan, also are exiting from China. These companies coming out of China are looking at India, and other central and south-east Asian countries, as possible alternatives. Increase in foreign investments in India for the April-June quarter is the result of the same thing.
Even Foxconn has planned an expansion of its existing project in Tamil Nadu, India. For this, the company will be investing ₹ 7.5 billion in India. Along with Apple, big companies like Samsung, Dixon, Lawa also have expressed willingness to produce 11.5 trillion mobile handsets in India. These companies have even submitted proposals under the ‘Production Linked Incentive’ (PLI) scheme.
The efforts to make India the manufacturing hub and given the increasing disposition, of the companies exiting from China, towards India, the claim made by Foxconn CEO Yong Liu will turn into a reality in the times to come.
Related posts:
China warns India about border conflicts leading to war
China deploys bombers against Taiwan; US bombers patrol in the South China Sea
Pressure mounts on China for protecting Masood Azhar at UN
Japan joins NATO cyberwar exercises to prepare for action against the Chinese cyberattackers
China is a culprit of Humanity; US Parliament report lambastes at China over the issue of Uyghur and Human Rights
The Coronavirus threat has reached the highest level; more than 800 patients reported from South Korea in 24 hours
