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For Foxconn, China is no longer the world’s factory

The “world factory” isn’t going to close any time soon, but China is going to have to learn to share the pie of assembling manufactured products with other countries. The pressure exerted by the trade war between China and the United States is one of the reasons behind the desire of Hon Hai, the parent company of Foxconn, to expand its production capacities beyond the Chinese borders.

Young Liu, president of the Chinese giant, has Explain that the group now has 30% produced outside of China, against 25% at the end of June. ” No matter whether it is in India, Southeast Asia or America, there will be ecosystems for production [dans chacun des pays] “. China will continue to play a key role in the Foxconn Empire, but the days when the country could claim to be the world’s factory are over, according to the leader.

This diversification of production is embraced by Apple, which manufactures AirPods in Vietnam and iPhones in India (read: Apple wants to rely on Vietnam and India to depend less on the China factory). The movement is not new: the manufacturer has asked its suppliers to relocate outside China from 15 to 30% of their production. But despite Donald Trump’s insistent and repeated requests, Apple cannot repatriate everything to the United States, where only the Mac Pro is assembled (for US customers) with parts imported from all over the world.

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