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Internet Posting: As Foreign Companies Leave China Who Will Fill in Holes Left by 45 Million Lost Jobs?

A popular Internet posting titled “As Foreign Companies Leave China Who Will Fill in the Holes left by 45 Million Lost Jobs?” was circulating on overseas Chinese media sites. The original source has not been found. Below is a list of statistics and facts used in the article:
1. The following is a partial list of well-known foreign companies that have closed or are relocating manufacturing sites they have in China: Nikon, Nitto, Samsung, AU Optronics Corporation, Olympus, Omron, Adidas, Uniqlo, Foxconn, Intel, LG, and Nokia.
2. In November 2013, there were 57,200 foreign companies in China. By November 2016, there were 51,800 foreign companies in China, a reduction of 9.4 percent.
3. Fixed capital investment by foreign companies was at 214.6 billion in 2017 compared to 508.7 billion in 2011, a reduction of 57.8 percent in six years.
4. China made US$60.07 billion in investments overseas in 2011 vs. US$170 billion oversea investment in 2016. It shows that China’s investments overseas continue to grow.
5. Foreign companies account for less than 3 percent of the total companies in China, but they contributed over 50 percent of China’s foreign trade volume, 25 percent of profit and 20 percent of China’s tax income.
6. Regarding China’s foreign trade surplus in 2017, private enterprises and foreign companies accounted for 46.5 percent and 43.2 percent, respectively, and state-owned enterprises accounted for only 10.3 percent.
7. Foreign investment’s contribution to GDP: Guangzhou 62 percent of its GDP; Shanghai 67 percent, Shengzhen 70 percent.
8. One statistic suggested that in 2013, the number of people employed by foreign companies (including Hong Kong, Macao and Taiwan) reached a peak of 29.63 million. By 2014 and 2015, the number of employed persons was 29.55 million and 27.9 million respectively. By 2016, the number dropped to 26.66 million, a drop of 2.97 million in three years. China’s official number for direct employment by foreign companies in China, however, was at 45 million.
9. Three major reasons why foreign companies have left China: the real estate bubble, increases in operating costs, a decline in profit, and a devaluation of Chinese currency.

Source: Wenxuecity, August 2, 2018