Global Supply Chain to Leave China by 2025: End of 'Made in China'? | Apple Supply Chain | Foxconn

According to data, Foxconn has nearly 90 production lines and employs over 300,000 people in Zhengzhou. Foxconn not only brings employment and tax revenue to Zhengzhou, but its import and export value also accounts for almost 80% of the city's total import and export value, 60% of the entire Henan province's, and nearly one-third of China's mobile phone industry chain export value. So Foxconn's economic contribution is extremely important to the province of Henan.
Now, as Apple's supply chain shifts to Southeast Asia, Foxconn is following suit and continuously announcing investments to build factories in India and Vietnam. It is said that due to a decrease in orders, Foxconn in Zhengzhou stopped hiring two months ago and will lay off over 10,000 employees.
The Shenzhen Longhua Foxconn factory has also been affected. Starting from March, Longhua Foxconn gave employees a few months' long vacation due to no orders.
In previous years, Foxconn faced numerous protests from employees due to serious overtime work and monotonous assembly line jobs that bored young workers. In particular, in October last year, the Foxconn factory in Zhengzhou experienced a large-scale covid outbreak, and many workers staged a shocking physical "escape" on foot due to dissatisfaction with the anti-epidemic measures in the factory and concerns about being infected. This move not only seriously affected Foxconn's production but also caused dissatisfaction from the founder of Foxconn's parent company, Taiwan's Hon Hai Precision's Terry Gou. This may also be one of the reasons why they decided to accelerate their relocation to India.

#chinaeconomy #foxconn #chinaexport #globalsupplychain #chinaobserver
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[davidbeattie]

The US gave China a great gift. An opportunity to join the family of nations and participate in the world economy. The CCP chose to treat this as a weakness and has used every opportunity to exploit its position and build its military strength. Its extreme arrogance has caused the rest of the world to now regard China as an unreliable trade partner and a hostile neighbor. The honeymoon is over. The CCP will have to build its own economy without massive external investment and access to export markets. Its not going to be easy and as usual, the Chinese people will suffer for the idiodicy of their leaders.

[daniell]

From the US, I've already noticed that many things I buy are no longer "Made in China" and I'm pretty happy with that. I see items from Taiwan, Singapore, Korea, and Vietnam pretty regularly. I'm lad to see that China is losing its status as a most favored nation. China has gotten so much preferential treatment that it isn't even funny.

[NickanM]

I hope that EVERY non Chinese company will pull out. The Chinese people needs to hit rock bottom to rise up against the CCP, since they didn't even react at the Tianim square m 4ssacre. Maybe hitting their wallets instead will help.

[charlesvanderhoog]

Not just money, also the new and more severe clamp down of the CCCP, e.g. the way they treated Jack Ma, has many Western CEOs scared.

[MaxpunchIDK]

I think the biggest reason is that many households in the west are struggling with paying their food already. They might say food prices increased just by 18% but I hardly find an item that did not double in price since last year

[sandifenandes]

Xi " don't poke the bear" threat has caused more hardship on China's people. Threatening Taiwan did not serve him as he thought.

[deebil]

Finally. This should have been done 10 years ago. All the western countries should also sanction all the components or put huge tariffs on them. People don't realize that China doesn't make any of the high end components. For example in an iphone; China might only make the case and battery. All the high end components like chips and screens are all made in western countries and shipped in to China to be assembled. They do very low end, low value add manufacturing. They should sanction all high end components, not just chips, so that when China steals western companies tech, they won't be able to get the parts to make the product. Or put such high tariffs on he components so that anything made by a Chinese brand would cost twice as much as western brands. Chinese companies should only be allowed to make pennies on the dollar to manufacture products for western companies and they should be happy to even make that.

[SA-dxsx]

Stopped buying anything “made in China” four years ago. Even my favourite foods in the supermarket, I check the label, then get it from another maker, even if it’s more expensive.

[claudepoulin]

This is the best, starting making quality stuff made in your country. 👍

[olavisau]

The massive tariffs and increased wages are causing china's manufacturing to be much less competive. It's quite simple - it's cheaper to move factories rather than keep paying increasingly high prices for manufacturing.

[john_doe_not_found]

Vietnam is also communist. The only good thing is it is 14x smaller than China and thus will never be a threat to global peace. But it can still form an allied block with China and North Korea in the future.
I would have more confidence in investments in Vietnam if it were a multi-party democracy.
India is fine, SE Asian democracies are fine, as long as their democratic institutions are not subverted.

[MrRagweed]

Every time I go to Walmart, I check where the product is made and it’s incredible to me that I see china made less and less.
I suspect that Most of the China made items are things that have been sitting in the warehouse for a while now. Idk

[Jamal-jvyc]

Dumb idea moving it to China in the first place.

[newdimension]

About time! In the 70/80's it was made in USA or Canada for me and I want that back

[चाैतारीटिभी]

Westerners have done a 'lots of favour' to China where as China did 'nothing' to them.

[danielgriffin]

People are sick of China's aggression and expansion.

[doorsmoorhoors]

Between "laying flat", the aggressive PCR campaign, and the abundance of "tofu dreg", its not looking good for China.

[mrmcgraw]

I don’t feel sorry for them. They now know how America felt when all of our jobs went over seas

[HolyRainbowism]

Fantastic news. May this trend pick up speed and incurage more and more countries in boycotting China completely.

[geroutathat]

Should have been done a long time ago, once we realized they were never going to play ball on the international stage. All they had to do was just work hard, keep their head down, graft, and when someone said "Hey china, how do you feel about this bad thing that is happening your biggest trade partners" china would respond "We feel exactly the same, any threat to the EU or USA is a threat to the China economy". Thats basically it. Its been clear for a long long long time that they simply have no interest at all in playing ball. You give them a plant to make your phone, they make clones, sell them on the china market, become rich, then that company exports the phone to compete with you in your country. Then they walk on the world stage and wag their finger at you? The thing is, the China project was a gigantic bet for the EU and USA and its basically failed, and they might never try it again, chinese people need to get a hold of their country quickly.