Monday, December 4, 2023

China has approved to move its factories to less industrial areas of the country

In recent years, China has become one of the world’s leading technological powers. Such is the reach of the Asian region in various fields that, in short, its developments in fields such as semiconductors, artificial intelligence, or cloud computing mark the path to be followed by many countries. However, this success is linked to a large increase in the cost of production, a situation that led China to move its factories, ironically, to its territory.

As pointed out by the JeuxVideo portal, China is conducting a factory transfer event to lower production costs. Currently, the country has 11 million graduates who seek to expand competition in China’s labor sector, so they demand higher salaries and better conditions than their predecessors. And this, which leads many companies to assume higher production costs, is the reason for their choice to move their factories.

Foxconn is one of the main defenders of this movement

Surprisingly, China has not chosen to move its factories to neighboring territories such as India or Vietnam. Unlike the usual trend years ago, the region chose to relocate its factories to less industrialized areas of their own country, an option where they hope to have labor costs that remain affordable. Therefore, among the main defenders of this movement is Foxconn, the main assembler of Apple, Dell, and Asus, which has already moved its factories.

In this way, Foxconn moved with the purpose of employing up to 300,000 people. It does not aim to be the only technology company that uses this standard, and others will likely follow in its footsteps in the future. For many, this decision is an obvious mistake, as China seeks to save money in favor of the vulnerability of its workforce. However, special media points out that we are experiencing a new episode in the evolution of China’s current economic model.

World Nation News Desk
World Nation News Desk
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