Want China Times
By: Wang Yang-yu and Staff Reporter
Affected by rising operational costs, some foreign enterprises operating in China are
shifting their investment to other countries. Among them, Taiwan-headquartered Foxconn Technology (Hon Hai), the world’s largest contract manufacturer of consumer electronics, is planning to invest 31 billion yuan (US$4.9 billion) in India.
The investment has been described by Chinese media as the biggest move in a “getaway trend” among foreign businesses operating in China, and it has led factories cooperating with Foxconn to rearrange their own deployments.
According to the business news site on Chinese web portal Sohu, Panasonic — which was the first Japanese enterprise to invest in China — began to gradually withdraw from the Chinese market in 2010 and it closed its battery factory in Beijing this year, leaving 1,300 people out of work.
Since the beginning of the year, Japanese retail brands like Uniqlo and Muji have cut down the number of orders placed with Chinese suppliers, shifting them to contractors in Southeast Asian countries and India. [FULL STORY]