Foxconn founder Terry Gou urges Apple to move production out of China

Debby Wu for Bloomberg:

The billionaire founder of Apple Inc.’s largest supplier asked the U.S. company to move part of its sprawling production chain from China to neighboring Taiwan.

“I am urging Apple to move to Taiwan,” said Terry Gou, the largest shareholder in Hon Hai Precision Industry Co., answering a question about whether Apple will shift production away from China. “I think it is very possible,” he said without elaborating.

The Trump administration’s threat to levy tariffs on some $300 billion of Chinese-made goods — including phones and laptops — has inflamed speculation that Apple will divert some capacity away from the world’s second largest economy. And Hon Hai is the largest of hundreds of Apple-suppliers with factories on the mainland, making most of the world’s iPhones from the central Chinese city of Zhengzhou.

A significant shift of manufacturing from China to Taiwan — which Beijing views as part of its territory — may also exacerbate tensions between the two governments. Hon Hai, the main listed arm of the Foxconn Technology Group, is today the largest private employer in China…

MacDailyNews Take: Keep turning the screws and we’ll get a U.S.-China trade deal sooner than later.

43 Comments

    1. Liberals like Cook who outsourced almost 100% of manufacturing to Gynnaaaaa?

      Do us all a favor and identify a conservative company that’s not also an economic traitor to the USA?

      Or are you stupidly branding everyone who understands how tariffs work a liberal? The “short term pain” bs is hilarious. It took decades for US companies to move manufacturing to Gynnnaaaaa, where there is a 1.4 billion strong consumer base and dirt cheap labor. You think Drumph is going to change that? He could offer a -25% corporate tax rate and US corporations would still stay in Gynnnaaaaa. You go ahead and list all companies that have shut down their Chinese operations. At most, greedy US corporations will route shipping through another Asian sweat shop to avoid tariffs.

      Anyway you were busy attempting to disrespect liberals. As if liberalism was a bad thing. Without liberals, the economy of the USA would be in the tank. Liberals like Steve Jobs would never have accepted the backwards thinking that dominates the idiocy of the right. If not for willingness of people to try new things (the opposite of conservatism, by definition), the biggest company on the west coast would be Geddy Oil. Detroit would still be slapping together 16 foot long 10 mpg smog spewing land barges that rust away in 3 years. International competition and liberal innovation— yes, with Tricky Dick’s liberal Clean Air and Clean Water Acts — are examples of the forces necessary to drag conservatives kicking and screaming into the modern era.

      The vapid attacks that the Trumpists trot out are devoid of any rational basis. all you got are labels!!!

      News today again confirms why the neocon faction that dominates political discourse cannot be trusted with any national decisions. Why would any intelligent being follow a loose cannon who publicly admits he ordered a unilateral offensive war but was finally talked off the brink when someone got through to the dimwit that people die in war?!?!?!?!! Where in the precious constitution does it say the US president is supposed to defend Norwegian and Japanese oil tankers in the MidEast???? Are those countries reimbursing the US for its military outlay as it bullies what 4 years ago was a monitored and subdued foe?

      For a president hellbent on making European NATO allies buy more weapons than they can ever use, Trump seems vert eager to engage the USA in multi trillion dollar hot wars, not to mention cold wars with all former allies. Hasn’t done a damn thing to slow the spread of nukes, improve US economy, or keep you safe.

      Keep ignoring the massive incompetence, Trumpist.

      1. It all has to do with politics.
        If it helps Trump look good then it is bad in the minds of hardcore Uber-libs.
        No need to get a wad in your panties…..

  1. Yes, this is a good idea. Apple should limit its production facilities to countries of the free and civilized world, but considering Apple’s home nation that isn’t going to happen anytime soon.

    1. What…are you upset that Apple won’t set up production in your worthless country which you conveniently never publish? Waaah, waaah! Life must be so difficult for you, little baby.

      1. Actually my country is pretty good, it doen’t go around invading others looking for imaginary weapons of mass destruction programs. I’ve mentioned where I live before, planet Earth if you must know.

        If life is difficult for me it must be really bad for you, not able to stay on topic, resorting to personal insults. Then again I have an idea of what fifth rate barbaric nation you come from so I’m not at all surprised, nor upset.

  2. It’s a smart suggestion. Distribution of production facilities to different countries (not just Taiwan as Terry Gou urges) is a hedge against uncertainties, ranging from political melt-downs to climate change.

    1. The thing is, if not Taiwan, it COULD be in another country, but STILL by Foxconn. Can that REALLY be considered diversifying?

      The simple fact is that no company comes close to what Foxconn is able to do. SO you’re either contracted to Foxconn, or you’re making VERY very few products…if any.

  3. Moving production out of China should be a no-brainer for any company that wants to still be in business 10 years from now. The list of reasons not to depend on China is growing – various human rights violations, stealing intellectual property, unfair trade practices, oppression of minorities, one party rule, etc. etc. etc. China is a country headed for a fall.

  4. “Keep turning the screws and we’ll get a U.S.-China trade deal sooner than later.”

    No, we’ll get a war — more idiotic commentary from MDN. China will not kowtow to the pressure of the current economic war. They have dug in for the long haul — another “Long March”. Trump will be long gone before the Chinese enter into any meaningful trade agreement with the U.S.

    Anybody who thinks current tariffs are about trade don’t understand the geopolitics at play here. This is a battle about the rise of China and Russia into a multipolar world, vs. the U.S.’s desire to maintain its hegemony and unipolarity.

          1. Sorry you are so confused.
            It’s you with the polyp fixation. To support your fetish, I did just have a Medicare paid for Colonoscopy and they removed 2 of you. Benign like you..
            Oh. And Medicare.
            Funny, this Liberal has had a lifetime of excellent heath and medical care. I didn’t whine and cry for trump to save me from myself.
            Like you.

          2. You dug into JCs ass looking for polyps. You waned the. You enjoy them.
            And please. Don’t pretend 80% of MDN post aren’t people jumping into things.

            1. JeeZus you are a sad morôn, Shyytyzen. As they say, no point arguing with an ideot like you because you just beat me everyone with your incredible experience being a compete ideot. Cool story bro, keep up the ideocy

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.