startIndia fired a "ten thousand arrows at once," and Foxconn responded with a "I dodge," but Xiaomi was caught off guard and simply stood still.Recently, Foxconn issued a statement stating that it has withdrawn from its semiconductor joint venture with Vedanta Group in India, worth $19

start

India fired a "ten thousand arrows at once," and Foxconn responded with a "I dodge," but Xiaomi was caught off guard and simply stood still.

Recently, Foxconn issued a statement stating that it has withdrawn from its semiconductor joint venture with Vedanta Group in India, worth $19.5 billion (approximately 141 billion yuan).

Due to well-known reasons, Apple relocated some of its production lines to India, and Foxconn, as Apple's "little follower," naturally went there as well.

India has also put in great effort to welcome the arrival of these two "God of Wealth".

For example, with a stroke of the pen, the Modi government agreed to provide billions of dollars in subsidies to Foxconn;

There are even plans to have Foxconn and Indian mining company Vedanta jointly build a factory, with an investment amount of up to 19.5 billion US dollars, totaling 141 billion RMB.

Reasonably, India has achieved this, why will Foxconn eventually escape?

Foxconn Escapes India

India everywhere wants to compare with China, and seeing China become the world's factory, naturally it is not willing to be outdone.

For example, in order to introduce Tesla, the Shanghai government specifically provides low-cost industrial land and provides huge subsidies to Tesla's new energy industry.

So India also follows suit, following suit and providing subsidies, and curry countries can also provide them.

For example, in December 2021, the Indian Ministry of Science and Technology disclosed that India had approved a $10 billion incentive plan to attract global semiconductor and display manufacturers to build factories in India.

In order to revitalize the manufacturing industry in the curry country, every effort has been made to draw curry flavored pancakes first.

How can Foxconn, as the world's largest electronic product manufacturer, not be tempted by the huge temptation of curry country?

In order to make the fish catch the bait, Modi frequently meets with senior leaders of Foxconn and sends invitations one after another; And also tweeted, welcoming Foxconn to invest in chip factories in India.

Even a peculiar argument has been raised that the localization of chip manufacturing in Curry Country relies on Foxconn for the future.

But unexpectedly, after being fooled by Curry Country, Foxconn actually agreed.

But what Foxconn didn't expect was that Curry Country was not only a scumbag, but also quite good at PUA.

Curry Country said: as long as a 28 nanometer chip manufacturing factory is built, the funds and subsidies will arrive immediately. Foxconn has believed it, but it is still being built, but the originally agreed upon funding subsidies have disappeared.

On the other hand, Weichuang Group, also a fruit chain OEM giant, has been working hard for 15 years in India, building 8 apple production lines. However, in the end, it was completely bruised by Curry Country and simply ran away with a bucket.

Foxconn saw its senior passing by and immediately understood that when I went, the subsidy from Curry Country was clearly deceiving and impossible to obtain.

To put it ten thousand steps further, even if you can get it, the example of Xiaomi being pitted is still vivid in your mind. In the end, you will still stay in India to make money and spend Indian money, and you won't want to bring any back home.

So Foxconn decisively chose to escape, and my brother stopped playing, so I also withdrew.

Why China Becomes a World Factory

Why can China be called the "factory of the world"? Is it solely relying on government subsidies?

Of course not. Firstly, China has a huge labor force, which provides the foundation for large-scale manufacturing.

These labor forces are not only numerous, but also have relatively high skill levels due to China's investment in education and skill training.

Secondly, in the past, China's labor costs were relatively low compared to many developed countries, which led many companies to choose to establish production lines in China.

Although this advantage has been somewhat weakened in recent years, China still has a cost advantage due to economies of scale and a well-established supply chain.

Most importantly, China has the most complete manufacturing supply chain in the world, from raw materials to components, to complete machine assembly, which can be completed in China.

This reduces logistics costs while also making the production process more flexible and efficient.

As for policy support, huge subsidies, and tax incentives, they are all icing on the cake.

For example, in order to introduce Tesla, the Chinese government and the Shanghai municipal government have provided a series of support for Tesla.

First of all, the China Construction Bank has granted Tesla a loan of up to 5.2 billion US dollars. In addition, the Shanghai Municipal Government has specially approved the provision of industrial land for Tesla and provided a series of subsidies for the new energy industry.

These policy commitments are not just empty words, but are actually helping Tesla expand rapidly in China.

This policy not only helps Tesla's development in China, but also promotes the development of China's new energy vehicle industry, and provides more choices for Chinese consumers.

However, India has put the cart before the horse, seeing China providing subsidies and also providing subsidies itself, the ultimate result is to imitate and add ugliness to ugliness.

If India really provides real gold and silver subsidies to enterprises, then it's nothing to say.

However, India only wants to attract foreign enterprises with its empty hands and then slaughter them as a Romance scam, which is very meaningless.

For example, India has imposed bans and restrictions on Chinese enterprises, and even directly frozen Xiaomi's assets of approximately 4.8 billion yuan, making Xiaomi's ten years of development in India almost return to before liberation, which is equivalent to Xiaomi's ten years in India in vain!

Do you think India only harvests Chinese companies? No, no, no, that's still too naive.

India is ruthless, regardless of which country you are from, even American companies will be treated equally and will be cut accordingly.

For example, in order to leave India smoothly, Ford was once trapped by India for over $2 billion before leaving.

In order to leave India, Li Ka-shing resold his business and was trapped by India for 2.6 billion dollars before escaping.

Amazon in the United States is the most speechless. After being fined 2 billion yuan by India, I want to argue that why did you punish me with the money? If someone in India comes back with a grudge, guess for yourself.

In addition, there are British telecom giant Vodafone, American IBM and Coca Cola, French Polaroid, etc.

Even Alibaba, which claims to be a global player, has a strong attachment to India and quickly escaped without any surprise.

Data shows that from 2014 to 2021, 2783 multinational companies registered or operating in India closed their operations in India.

Some people have listed doing business in India, becoming the president of South Korea, drug trafficking in China, and tax evasion in the United States as the four major deadly acts. Although it is just a joke, it also indirectly proves how bad the business environment in India is.

Although India, which now has the most populous market, looks very attractive, the face of the Indian government harvesting multinational corporations is truly ugly.

Doing business is not like this, and no wonder India is known as the "graveyard of multinational corporations". Oh, no, in the long run, it is expected to eventually become its own graveyard!

ending

India has great ambitions to build a local chip industry, but if it only relies on drawing big cakes to attract foreign companies, it is bound to be a waste of time.

After all, for companies that can achieve global rankings, their bosses are not fools. Whoever believes in India is SB, and India's reputation is already rotten to the bone.

One thing to say is that rational utilization of foreign investment is an important step in strengthening national industries and a key driving force for backward countries to catch up with advanced countries.

But India, on the other hand, wants to take shortcuts, which are very uncomfortable.

In addition, there is no domestic enterprise in India that can compete, and at the same time, it cannot attract powerful foreign enterprises. Therefore, it is already evident to the naked eye that India will continue to lag behind.

Facts have proven that some things can only be achieved by China, and India is really not capable!

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])