Voice of America (VOA) Chinese Edition recently reported that, on August 1, Samsung announced that it is closing its last personal computer manufacturing factory in China – Samsung Electronics Suzhou Computer. Over 800 employees may see their contracts end. The Suzhou factory was established in 2002. It is Samsung’s only laptop manufacturing factory in the world. Last year, Samsung closed its last cellphone manufacturing factory in China and moved to Vietnam. That closure had a major economic impact locally. Now Samsung has only two factories left in China. One makes LCD displays and the other makes DRAM memory chips. Experts pointed out that, in the past two years, with the trade war, the coronavirus pandemic, and the worsening U.S.-China relations, the global supply chain is rapidly moving out of China and moving to countries such as Vietnam, India and Mexico. The trend is especially clear for companies from the United States, Japan, South Korea and Europe. At the same time, China’s low labor cost advantage has been weakening as well.
Source: VOA Chinese, August 1, 2020