According to a report by Huanqiu, Foxconn, the supplier for Apple, Blackberry, Xiaomi, and Amazon, has signed a US$5 billion contract with India to build an electronic manufacturing plant. The article said that, as one of the fastest growing markets for smart phones, India is a country that smart phone manufacturers, including the ones from China, wish to tap into. In addition to Xiaomi, the TCL Corporation, another Chinese multinational electronics company, is planning to build its plants in Brazil and India. As the manufacturing costs continue to grow in China, driven up by the increase in labor, currency, and energy costs, the price of China made products is close to the U.S. The article said that having investments in countries like India will not only consume the excess production capacity that China has but will also assist Chinese enterprises to “step out” and gain added value for China made products.
Source: Huanqiu, August 7, 2015