Foxconn Speeds up Exit From China: Workers Kneel, Apologize, Ask Them Not to Leave

Summary

The script discusses the relocation of Foxconn's manufacturing from China to Vietnam and India, following Apple's shifting supply chain. It touches on the social and economic impacts of this move, including unemployment and the transformation of local communities that relied on Foxconn's presence. The narrative also highlights the harsh working conditions in some Chinese factories compared to Foxconn's comparatively better treatment of workers, and the broader implications for China's economy as it faces a potential exodus of manufacturing jobs.

Takeaways

• 📦 Foxconn is relocating equipment from its Shenzhen plant to Vietnam, possibly signaling a withdrawal from China.
• 🏭 Foxconn's Longhua plant in Shenzhen was once the largest factory in mainland China, employing up to 150,000 people at its peak.
• 📉 There have been reports of equipment relocations from Foxconn's factories in China to India and Vietnam due to a decrease in Apple's orders.
• 👷‍♂️ The reduction in Foxconn's workforce could lead to massive unemployment for many workers in China.
• 🧍‍♂️ A Chinese man apologized to Foxconn for previously labeling it as a sweatshop, realizing the harsher conditions in local private factories.
• 💼 Foxconn provides better working conditions and benefits compared to some local factories, including breaks, designated smoking areas, and gloves.
• 📈 Foxconn's departure from certain regions in China has led to economic decline, including a significant drop in export volumes and GDP.
• 📉 Henan Province's foreign trade performance has been severely affected by Foxconn's gradual relocation to India.
• 🏢 The real estate market and local businesses surrounding Foxconn's factories have also suffered due to the company's withdrawal.
• 🌐 The global trade system is interconnected, and the relocation of major companies like Foxconn can have far-reaching impacts, as seen in the butterfly effect.
• 🚫 There is a call for China to prevent Apple and Foxconn from leaving, as their departure could have devastating effects on local economies and employment.

Q & A

What is the current situation at Foxconn's Shenzhen plant?

The Shenzhen plant of Foxconn is getting quieter as equipment is being relocated to Vietnam, which may confirm rumors of Foxconn potentially withdrawing from China.

Why is Foxconn relocating its equipment from China?

Foxconn is relocating its equipment mainly due to a shift in Apple's supply chain and a decrease in Apple's orders, leading to a reduction in workforce and factory operations in China.

What was the peak employment at Foxconn's Longhua plant in Shenzhen?

At its peak, the Longhua Foxconn plant in Shenzhen employed up to 150,000 people.

How did the Longhua Foxconn plant impact the local community in terms of daily consumption?

The Longhua Foxconn staff was known to consume 20 tons of rice, over 100 pigs, and 600,000 eggs daily, indicating a significant impact on local food demand.

What is the significance of Foxconn's presence in Henan Province?

Foxconn's presence in Henan Province is significant as it was once the largest exporter and contributed to the province's foreign trade performance and economic growth.

What are the consequences of Foxconn's relocation on the local economy in Henan Province?

The relocation has led to a sharp reduction in orders, a drastic decrease in the workforce, and a significant drop in export volumes, impacting the local economy negatively.

How has the public perception of Foxconn changed in China?

The public perception has shifted from viewing Foxconn as a 'sweatshop' to realizing that compared to local enterprises, Foxconn offers better conditions and benefits, and its departure could lead to unemployment.

What is the reported percentage of Apple's iPhones manufactured in India at the end of the previous year?

By the end of the previous year, it was reported that 14% of Apple's iPhones were manufactured in India.

What are the plans for Foxconn's factory in Chennai, India?

Foxconn plans to double the capacity of its existing factory in Chennai, India, aiming to produce approximately 20 million iPhones annually and increase its workforce to 100,000 employees by 2024.

What impact has Foxconn's potential withdrawal had on the real estate market in the areas where it operated?

Foxconn's potential withdrawal has led to numerous unfinished buildings and a decline in the real estate market, as the demand for housing and commercial spaces has decreased significantly.

What is the broader implication of Foxconn's relocation for China's economy and industry?

The relocation signifies a shift in the global trade system and could lead to massive unemployment, decreased tax revenue, and economic decline in the regions affected. It also raises concerns about the reliance on single industries and the need for economic diversification.