Foxconn shift to India causes concerns in China

[proud_indian]

Foxconn shift to India causes concerns in China

Taiwanese firm Foxconn's decision to invest a whopping USD five billion in India has caused unease in China as it marks the first top international firm opting for India amid a slowdown in the Chinese economy.

By: PTI | Beijing | August 10, 2015 9:38 PM

Foxconn converted China the leading base for manufacturing of all top brands of phones and computers including Apple, Samsung, Dell etc. (Reuters)
Taiwanese firm Foxconn’s decision to invest a whopping USD five billion in India has caused unease in China as it marks the first top international firm opting for India amid a slowdown in the Chinese economy.

“Foxconn chooses India over China for new plant,” read the headline in state-run china.org.cn while carrying the news of the Taiwanese electronic giant signing up to set up a big plant in Maharashtra.

“Foxconn’s latest India investment represents the leading electronic product maker’s intention to profit from the world’s fastest expanding market of smartphones. Foxconn, famous for making parts for Apple, will reportedly produce Xiaomi phones in the new factory, a rumour that Foxconn authorities did not clarify or comment,” it said.

Despite the bad publicity over suicides in the past by Chinese employees owing to pressure and poor working conditions, China valued Foxconn’s massive presence as it employed over a million workers, who mostly hailed from rural areas with little education.

Foxconn converted China the leading base for manufacturing of all top brands of phones and computers including Apple, Samsung, Dell etc.

It will be the first leading investor to show interest to shift to India.
“The Foxconn-India deal also shows that India wishes to develop its manufacturing sector, as the rising labor cost in China is forcing away many investments in lower-end and labor-intensive industries,” the report said.

“At the same time, the Chinese government is encouraging its companies to take the opportunities brought by the

“Belt and Road” initiatives, and to invest overseas, a move which also helps absorb excessive industrial capacity back home,” it said.

China’s growth stood at seven per cent in the first half of the year with forecasts that it would slow down further.
The slowdown is causing concern as the world’s second largest economy which posted double digit growth rates for over two decades attracted massive foreign direct investment, (FDI).
The International Monetary Fund (IMF) in its recent forecast said China’s economy will slowdown to 6.8 per cent this year followed by 6.3 per cent in 2016 and six per cent for 2017.

Foxconn shift to India causes concerns in China | The Financial Express​

 

[proud_indian]

Foxconn chooses India over China for new plant

By Chen Boyuan
China.org.cn, August 10, 2015

Foxconn Technology signed a contract with India on Saturday that will allow the Taiwan-based electronics company to launch a new factory in west India's Maharashtra state.
The factory, expected to be operational in five years, will cost Foxconn US$5 billion to build and the company founder and chairman Terry Gou said Foxconn would seek local partners to form a joint venture.
Foxconn's latest India investment represents the leading electronic product maker's intention to profit from the world's fastest expanding market of smartphones. Foxconn, famous for making parts for Apple, will reportedly produce Xiaomi phones in the new factory, a rumor that Foxconn authorities did not clarify or comment on at a press conference on Sunday.
The Foxconn-India deal also shows that India wishes to develop its manufacturing sector, as the rising labor cost in China is forcing away many investments in lower-end and labor-intensive industries.
At the same time, the Chinese government is encouraging its companies to take the opportunities brought by the "Belt and Road" initiatives, and to invest overseas, a move which also helps absorb excessive industrial capacity back home.
Foxconn chooses India over China for new plant - China.org.cn

 

[Srinivas]

This is not a India vs China.

Chinese smart phones can also establish their facilities here based on the GOI norms.

 

[Place Of Space]

Hope you guys can quickly get used to Foxconn's management.

It's mainly 3 shift working system,
dormitory life,
the longer you work there, the more salary you can gain.

 

[ghameed]

Hope you guys can quickly get used to Foxconn's management.

It's mainly 3 shift working system,
dormitory life,
the longer you work there, the more salary you can gain.

We are basically where you guys were twenty years ago . If it will financially empower a hundred thousand odd poor, then I guess a restrained working environment is little sacrifice to pay for a climb up the ladder.Besides, Foxconn is not new to India. They were part of one of Nokia's largest plants in the World in Chennai and were present for close to 10 years as contract maufacturers. Tax issues led the plant to its closure when Nokia was bought by microsoft, otherwise by now india would be manufacturing Lumia phones. Nokia tried to evade tax to the tune of 2 billion dollars. the Indian govt. would have none of that, and slapped a notice, and a slew of events followed which ended in the plant being excluded from the deal between Microsoft and Nokia

 

[unbiasedopinion]

Very good.. Bring more investment into India. Its India age now... Once India reaches its maturity level, then all the investments will shift to another country. This is how money rotates. Anyways good news for India and for my share market.

 

[proud_indian]

This is not a India vs China.

Chinese smart phones can also establish their facilities here based on the GOI norms.

obviously they can and they are doing it already, but the point is companies like Foxconn are one of the biggest job providing company in China and in the world. They employ more than 1 million people in china alone.

If they move some of their business to India due to our market or cheap labor cost, It will set a precedence for other companies to do so.

 

[unbiasedopinion]

Hope you guys can quickly get used to Foxconn's management.

It's mainly 3 shift working system,
dormitory life,
the longer you work there, the more salary you can gain.

3 shift working system means three different set of labor. Or in reality its just 9 hrs per shift (with 30mins handshake at both start and end of the shift with other shift).

 

[Mo12]

Want to reiterate the significant of the investment, $5b is 2%+ of the whole Pakistan GDP

 

[Place Of Space]

We are basically where you guys were twenty years ago . If it will financially empower a hundred thousand odd poor, then I guess a restrained working environment is little sacrifice to pay for a climb up the ladder.

I need to explain the third point more precisely, "the longer you work there" I meant to say, work there for 5 years or 10 years. If a guy work for them one year, then leave, he just waste his own time. The starting salary is not very high. My elder sister once worked for Foxconn, so I know something.

 

[ghameed]

I need to explain the third point more precisely, "the longer you work there" I meant to say, work there for 5 years or 10 years. If a guy work for them one year, then leave, he just waste his time.

We are basically where you guys were twenty years ago . If it will financially empower a hundred thousand odd poor, then I guess a restrained working environment is little sacrifice to pay for a climb up the ladder.Besides, Foxconn is not new to India. They had several thousand workers in their Chennai plant.They were part of one of Nokia's largest plants in the World in Chennai and were present for close to 10 years as contract maufacturers. Tax issues led the plant to its closure when Nokia was bought by microsoft, otherwise by now india would be manufacturing Lumia phones. Nokia tried to evade tax to the tune of 2 billion dollars. the Indian govt. would have none of that, and slapped a notice, and a slew of events followed which ended in the plant being excluded from the deal between Microsoft and Nokia

 

[Place Of Space]

3 shift working system means three different set of labor. Or in reality its just 9 hrs per shift (with 30mins handshake at both start and end of the shift with other shift).

Yeah, similarly, it's up to their orders.

 

[Srinivas]

obviously they can and they are doing it already, but the point is companies like Foxconn are one of the biggest job providing company in China and in the world. They employ more than 1 million people in china alone.

If they move some of their business to India due to our market or cheap labor cost, It will set a precedence for other companies to do so.

Reason why China is re orienting itself into consumer driven economy and also improving its services sector.

 

[Rajaraja Chola]

I do not want to make it India vs China thing. As far as my experience I know India is not even nearby China wrt Electronics.
China have a electronics ecosystem. Even to produce a fake mobile, u need a processor, display etc China has everything.

This is just a start. Nokia, Motorola, Foxconn, Flextronics(halved their labour), Sanmina-SCI (going through a rough phase, cos I work there) all electronics majors based in Chennai. They made heavy profits not so long ago, but now most of them are closed or going to.
We need to create a base. China is a inspiration for us in Electronics manufacturing

 

[unbiasedopinion]

Yeah, similarly, it's up to their orders.

Its good then. it will employee three times the workforce then what a normal factory employs with one shift. More work mean more employment but should be in lieu of personal life of workers.