India is in real trouble. Apple is moving back some
production back to China and Foxconn is following close behind, having
decided to invest US$1 billion in a new facility in Henan. What does
that mean for others catering to the Apple and Foxconn production supply
chain in India? They will move out as well.
Apple is facing new
allegations and facing a big fine by the Indian Government. Is the Modi
Government forcing Apple into the hands of Indian conglomerates like
Tata or Adani Group when Apple is not even well grounded in India as
yet? That is suicide.
Looking at the other end, what will be the
Chinese response to Foxconn moving back to China? China's trust in
Foxconn is more or less gone down the drain, and China should know that
being self-reliant is the only way to go forward. Foxconn can disappear,
but China will always be around. Foxconn's hope to continue with the
same services from China's supply chain is not a guarantee, as China is
promoting its own high technology companies. For Foxconn, any renewed
attempt to salvage its tattered reputation in China is going to take
some great effort, if possible.
Anonymos
2 comments:
Well India can ask Apple to go fly kite as it can ask Sinkieland to invest in Durian plantation in India. China will still welcome Foxconn investment, as it will create jobs. This investment will be own by china if the Taiwanese dare to declare independent.
Foxconn risks being seized by Modi using retrospective tax laws and the earlier it exits India, the better. India is the graveyard of foreign companies. In China, unless war breaks out, China is not going to seized Foxconn for no apparent reason.
Post a Comment