Foxconn Production Lines Exit China, Global Supply Chain Shift Results in Mass Factory Closures

The global industrial chain shift has resulted in foreign enterprises in China transferring their production lines to Southeast Asia and India. This move has led to a significant drop in purchase orders for raw materials and components from Chinese local enterprises. This change has profound implications for China’s economy. The relocation of foreign businesses has caused widespread job losses and significant income reductions for those who remain employed. These factors have all led to a contraction in China’s domestic market, further impacting China’s economy and posing significant challenges to social stability. Foxconn, a world-leading electronics manufacturer, has recently announced its production line shift in China during a media interview. Liu Yangqing, the company’s chairman, revealed in a BBC interview that Foxconn had moved part of its production line to Mexico and Vietnam, which undoubtedly exacerbates the economic impact of the industrial chain shift. From a higher perspective, Foxconn’s action might indicate a broader shift of its production lines out of China. #foxconn #globalsupplychain #chinaeconomy #chinaobserver All rights reserved.