Despite speaks that Foxconn may depart Zhengzhou, there have been new indicators that the condition may be improving.
The technology producing large brought in around 50,000 workers in its latest getting rampage in August. It also promised to invest 1 billion yuan ( US$ 137 million ) to build a new business headquarters in the city.
Foxconn did not respond to CNA’s ask for opinions on its Zhengzhou plan.
TRUMP AND Taxes
Trump’s taxes pose a significant risk not only to the town ’s market, but also to the livelihoods of many workers who rely on those sectors. The flutter effects extend to the areas where these staff live, potentially disrupting regional economies and social security.
However, the influence of Trump’s industry plan on China may be felt beyond its technologies sector, said businesses.
For example, Jungle Tiger, a Zhengzhou-based company that sells outdoor experience products such as camping tents, tents, and pan, is worried it may be affected.
The business ’s items are listed on e-commerce programs like Alibaba and exported to overseas buyers.
Its leader Zhang Gaofeng said the company started selling to the US in 2018, and managed to buck the trend in Trump’s first name because it principally targets the high-end business.
The company exports mainly to Europe and America, with the US being its largest industry, accounting for about 40 per cent of its imports.
However, Zhang said he is not putting all his eggs in one basket, especially after Trump’s challenges to hit further tariffs on Foreign items.
“We are now entering areas in the Middle East and Southeast Asia. The Middle East accounts for 20 per cent of our sales, ” he added.
“As US laws evolve, we are diversifying our business target. We are likewise exploring Russia due to its potential and proper relations with China. ”
Authorities said many companies still need to supply components or components from China.
“Redirecting funding to Vietnam, to India, is not as red. The business environment may not be able also to compare with Zhengzhou, ” said Liu Baocheng, director of the Center for International Business Ethics at the University of International Business and Economics.
“The important matter is that China has a pretty strong professional cluster. For some of the little devices or parts, you still need to supply within mainland China. ”
Chinese President Xi Jinping recently reaffirmed China’s devotion to more open up its business and align itself with global trade rules, warning that business wars produce no winners.
But whether that is enough to encourage Trump that China is in for good business remains to be seen, said spectators.