Taiwan Technological Company Delta Electronics, supplier of nutrition components for Apple and Tesla, reduces staff in Chinese factories and displays production to the countries of Southeast Asia and India. About this in an interview with Financial Times, the chairman of the Board of the company Yansi Hai (Yancy Hai) was told.
According to him, the number of employees of the company in the PRC is already reduced by 40 percent, but the company is going to bring the numbers to 90 percent. Thus, only one of the ten employees will remain in the Delta Electronics factories.
High indicated that the trading war of Washington and Beijing influenced such a decision, but China’s problems are not exhausted by the confrontation. The fact is that the second economy of the planet is no longer an attractive place for factories. Since 1992, when the first Delta factory was opened in the city of Dongguan, the salary there rose ten times. Moreover, the framework of frames significantly increased, so India now looks much more attractive.
The head of the company noted that only fully automated production will remain in China. Such as a line in Suzhou, where three people work instead of 42 people. In addition, sensitive technologies, such as those associated with telecommunication equipment, have already been removed from China.
As noted by the Edition, Delta Electronics is not the only technological company that is trying to transfer power from China, but most of them are reluctant to share in detail. They are afraid to bring the wrath of the Chinese authorities, which are able to significantly complicate the process. However, the reasons for their actions are the same – pressure from the United States, expressed in the duties on Chinese products, and the rapid growth of its cost.
Meanwhile, Beijing continues the war with its own technological companies. The other day, the next strike is applied by Alibaba – from local application stores, the UC Browser browser has been missing. Prior to this, the Chinese authorities have blocked the entry to the Bank of the subsidiary of Ant Group, after which they forced to put her business under their control. There were complaints and to another technological conglomerate Tencent, we are talking about buying an educational online service YUANFUDAO in 2018. The head of China Si Jinping considered that the corporations received too much power, therefore, in relation to them, tight measures should be taken.