Why technology manufacturers leave China

And the most super-big ones go away – Samsung, Apple, Foxconn.

Brief reasons.

1. Trade war with the States.

The states and China have been exchanging pleasantries for a long time: either they will come up with taxes to each other, or they will make another trick. Most of these surprises were not felt by consumers – the costs were dissolved in a long chain of intermediaries. However, Trump recently introduced a direct 15 percent duty on the import of electronics from the Middle Kingdom – for phones and similar household iron it will work in December. Innovation will definitely affect buyers ’wallets – to avoid this, tech giants flee from China.

2. Collecting in China has become expensive.

In 2008, the PRC government introduced a law protecting the rights of employees. Since then, the salary of party subjects has only grown. By 2017, it exceeded the Mexican, Brazilian and Russian levels, equal to the peripheral countries of the EU. In 2019, the average salary reached 60 thousand, if translated into rubles. It is not surprising that in such conditions, the largest brands began to look towards other countries. For example, in India, the minimum wage per hour in the manufacturing sector is $ 0.7, while in China it is almost $ 4.

3. Brands want to produce where they buy

It is believed that Samsung closed the production also because nobody buys its devices in the Middle Kingdom. Locals prefer HUAWEI, Xiaomi, OPPO-Vivo or iPhone. Moreover, any brand wants to produce goods where it will be sold. Overseas tech giants have a hard time with this – the Chinese prefer their electronics if it’s not about a premium like Apple.

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Here is a story. China ceases to be an all-union forge. They will develop their brands. Moreover, the brands are very cool.

Especially for you Alihanrin Alihan!

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