Alarming! Foreign manufacturing companies are sneaking out of China

Alarming! Foreign manufacturing companies are sneaking out of China

At the beginning of May, AUO decided to close the Song jiang Monitor module production line, and held a statement to talk with staff for follow-up shutout, personnel placement and other matters.

AUO(AU Optronics Corp) is the world's third largest, Taiwan's first large LCD panel manufacturers, employees play a banner to express their dissatisfaction with the factory RAID-type shutdown.

Until January 2018, the number of patent applications has reached 23,900, and more than 17,800 patents have been approved worldwide. And since the merger of Dahui in 2006, The share of the notebook LCD screen leaped to the world's first.

In fact, the factory located in Song jiang. Shanghai, has been still in a profitable state, and in 2017. AUO also recruited 1200 engineers in Taiwan University, expanding the recruitment of cloud systems development and large data analysis of talent. All indications are the case that the main reason for the closure of the Shanghai plant may be that its key customers Samsung and Apple quietly transfer orders.

In the past few years, Samsung has opened a huge migration of capacity to shift its capacity in the Chinese mainland to Southeast Asia, leading to a sharp decline in the number of workers in China. Up to now, the number of employees in China is less than 3000, while the number of Southeast Asia has reached 140 thousand, 40 thousand more than in the heyday of China. In addition, Samsung's investment in Vietnam reached 10 billion US dollars last year. As one of the important consumers of Samsung, Samsung is bound to make corresponding adjustments.

Samsung has been speeding away from China in recent years, with tens of thousands of workers in mainland China, down to almost nothing left now! Samsung's industrial transfer is only a few years, bringing millions job losses and tax cuts, it's not a small loss to China's manufacturing industry.Samsung's runaway, the hardest hit was not only the tens of thousands of Samsung employees families but a huge supporting industrial chain, including Samsung supply chain enterprises in China, such as the AUO, as well as the upstream and downstream industries.

More alarming is that not only Samsung in the evacuation, Panasonic, Sharp, Toshiba, Sony, Apple are secretly evacuated, just Foxconn, solved the employment of nearly millions of people, if the apple is really evacuated, the days when there are no jobs in the domestic are really coming.! It's not alarmist.

In many people's minds, foreign capital has completely decayed in China, but what is the truth? In the four first-tier cities, Foreign investment contributes 2/3 of Shanghai's industrial output value. Economic contribution to Shenzhen up to 70%,Guangzhou foreign enterprises are as many as 20,000, accounting for the industrial output value of 62%! In addition, including the industrial center of the Yangtze River delta Suzhou, Xiamen, foreign capital are overwhelmingly dominant, which amply proves that now is not a foreign enterprise can not be separated from China, but we need foreign capital, this is the stark reality; Unfortunately, most people do not realize that they still sleep in the dream of arrogance.

Nowadays, people's values have deviated from the development of the real economy and the manufacturing industry, but the fictitious economy represented by the property and financial market.

Look at the recent failure in manufacturing, especially in private manufacturing, not entirely because of the low-end and backward, but because the whole into the "high risk, low return" of the circle. It is frightening that private investment has gone down and has now been negative.

Virtually all manufacturing giants are working on real estate or financial projects, becoming a stark contrast! Money is the smartest. It flows to lucrative places, greed is the nature of capital.

Land finances have fed the local governments, and in some cities they feel that messy manufacturing plants have affected the environment, and that the plant's fate is no longer important to them. They are immersed in the real estate and financial bubble, forgetting the city's base of thriving-manufacturing, also forgetting the way where they came.

Industry is fundamental, finance for using. We have to go back to the foundation of a nation--the high value-added manufacturing industry.

Cheer up, my country!