Foxconn Flees China for India; Foreign Capital Withdrawals Hit $3.17 Billion in 5 Days

In April, rumors of Foxconn's exodus from China and its move to India sent stock prices in China and Hong Kong tumbling. Data indicate that during the five trading days starting April 23, over $3.17 billion in foreign capital fled China through the Shanghai-Hong Kong Stock Connect mechanism, amounting to more than 21 billion RMB. This marked the longest capital withdrawal streak since November last year.
On April 24, Foxconn officially announced its investment in India through the Hong Kong Stock Exchange, a move that will inevitably diminish its investment in China and impact millions of jobs in mainland China. Consequently, the Chinese and Hong Kong stock markets experienced notable fluctuations that day, with a broad market decline breaking expectations. Market panic led to a drop in both China and Hong Kong stock indices, with the Shanghai Composite Index falling below 3000 and the ChiNext Index hitting a new low. Trading volume in both markets surpassed one trillion for 15 consecutive days after falling for four straight days, with a net outflow of 4 billion in foreign capital.
Foxconn Interconnect Technology estimated on April 24 that net loss from continuing operations for the first quarter would range between $5 million and $10 million, compared to a net profit of $30.6 million for the same period last year. The loss is attributed to the group's investment in digital transformation, which involves moving from mainland China to India and incurring additional costs.

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[summer]

This is the best way to weaken China: Get all Western companies out of there and let the CCP deal with angry unemployed citizens.

[Waverlyduli]

Beijing got a hold of the patent to the the North Korean economy, reversed engineered it and are now on track to deliver it to the Chinese nation. 5:48

[mxmajewski]

If a country forbids a company from leaving it should be sanctioned by as many countries as possible

[robotrash]

We Americans are increasingly careful to avoid buying Chinese products because of decades of frustration regarding failure due to terrible quality. May as well divert the ships straight to the scrap yard. If Chinese don’t care why should we?

[chrisbell]

The CCP maintains it does not need the US/ EU or anyone else. Now they will have the chance to prove it as everyone exits.

[MartyFillingim]

Years ago, the company that I worked for opened a design center and had plans to open a fab (land already purchased), but left because designs were stolen and taken down the street to be built by another company. The case was strong but was denied. When a country does not respect intellectual property, then a company has no choice but to leave. I am amazed that so many companies moved into to China since they were required to open a joint venture with a Chinese company and transfer the process technology and IP used to build the products. There is a reason why China moved ahead 90 years in process manufacturing technology in 20 years. I am not sure what is happening now or when or if the requirements changed, as that was in the 1990s. I do not know why the leaders around the world did not put a stop joint ventures back then.

[samsonsoturian]

There's something subtle I think most people miss: Dumping is systemic in China which is part of the reason exports from there have been stupid cheap for decades. Now that it is impossible to borrow lots of money, most companies can no longer do this driving up prices which drive away customers.

[gisleyalves]

🇧🇷🇧🇷 ALL FOREIGNER COMPANY MUST LEAVE CHINA IMMEDIATELY. 🇧🇷🇧🇷

[China_Secret_Police]

*Foxconn has already moved 35% to Chennai*

[nikunjtejani]

Love to see more Made in India Products.

[Aeternum_Gaming]

on the bright side, Foxconn will save money on the suicide net budget.

[advancetotabletop]

“ It is the world's largest technology manufacturer and service provider. While headquartered in Taiwan, the company earns the majority of its revenue from assets in mainland China and is one of the largest employers worldwide” — Wiki. Surprised Foxconn still remained in China up to now, considering how much sabre-rattling China has had for decades, now. I guess China‘s anti-foreign business policies are finally paying off. Enjoy your recession, inflation, food imports, energy imports, raw material imports, and soon water imports, China.

[tontj]

The economic just does not add up anymore. Thats the main reason.
This already happen previously. Like when company is moving out from Japan and South Korea to China.
Now, they move from China to India.

Next, they will move again when the economic does not add up anymore.

[maheshthakur]

Foxconn like so many other companies are finally coming to understand the grave error of investing in China - for MULTIPLE reasons.
Well important is - even though belated - now they all are taking remedial steps

[andykww]

It's now cheaper to manufacture in India. Expect everything to start having a "Made in India" label. I remember in Back to Future where Doc Brown pulls out a chip from the DeLorean and says "No wonder it broke, it says Made In Japan." There was a time when Made in Japan had the same connotation as Made in China today.

[mrbag]

This is also symbolic as India's population will surpass China's by the end of the month, while China is facing a Japanese style population decline mainly due to the CCP's nearly 40 yr one-child policy and its 996 work culture (9am to 9 pm 6 days a week).

[jamesneveaux]

Woof Warrior didn't pan out well, Winni the Pooh needs a new strategy.

[viper]

Can't threaten the world with war and oppression and expect everyone to want to do business with you

[auggieeast]

China says Foxconn can't leave? This should be much bigger news so anyone contemplating investing in China will know how difficult it can be to get your money out.

[romeoakbarwalter]

India welcomes all major companies. India is a stable, democratic and one of the best places to work with.