With 12 suicides and alleged torture to deal with in the media it looks as though Taiwanese electronics giant Foxconn is planning to ditch China all together in favor of Indian and Vietnamese manufacturing bases. This would ultimately mean 800,000 Chineseworkers will be out of work and will also lead to the demise of local businesses around Foxconn’s mammoth Shenzhen plant, who rely on workers for their custom.
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The news is still unconfirmed, but even the idea of Foxconn leaving the mainland must be a huge blow to all their workers who were promised 20-30% pay rises only weeks ago!
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This sounds ominous doesn’t it? But I would doubt that Foxconn would move anything wholesale to Vietnam and especially India. The whole reason that Taiwan businesses have such extensive operations in China isn’t just for cost reasons. Due to language/cultural advantages, and keen political support by the Chinese government to integrate Taiwan’s future to the mainland’s, any Taiwanese management wanting to relocate sophisticated processes will find it difficult to move to Vietnam/India where they’ll be just another foreign company.
This bit of new is probably true, to an extent.
Most likely, it’s designed to gain leverage with the workers and the various levels of government.