Foxconn, the company that produces the Apple iPhone and iPad, as well as other electronic products, could be moving its plants out of China, which could cause disruption in the supply chain.
A recent article states:
Foxconn’s facilities in Taiwan tend to
be highly automated, whereas on the
mainland they are much more labour
intensive.
This intensive labour model, with long
working hours and rigid systems, is
one of the reasons given for worker
unhappiness in southern China.
Taiwan is also trying to woo companies
back. Last month it cut business
income tax from 25 per cent to 17 per
cent, and it is planning to set up
several free trade zones for
tariff-free imports.
The fallout from the Foxconn crisis continues to mount. There are fears of a domino effect causing serious production disruption in Shenzhen, one of the most heavily industrialised cities in China.
Buy your products now or see what happens?
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Jun 11 '10 at 14:11
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