In the past ten years, China's science and technology has been highly developed, cultivating a batch of talents and enterprises, many of which have even entered the world's top 500 companies. But what people did not expect was that after these entrepreneurs grew up, they moved overseas one after another. There was Foxconn in the front, then there was TSMC, and now even in the Ningde era, which was native to the mainland, it is also going to North America to build a factory (currently selecting a site). What are these entrepreneurs trying to do? Why not invest in the country? To answer this question, we have to start with internal causes.
The idea of "understanding the king"
Calculate an economic account, suppose Foxconn wants to build a factory that can accommodate 40,000 employees, Lao Mei invited Gou to come over, what are the benefits? Income one, this factory, will bring 40,000 jobs, if the development is good, may be 80,000 or not necessarily, greatly alleviating the employment pressure; income two, these 40,000 people to consume ah, it will greatly promote the circulation of goods, enhance economic vitality; third, convenient for upstream manufacturers, better control of the supply chain.
In order to impress Gou, after offering a $4 billion ($2.85 billion + local subsidy) tax incentive, the "King of Understanding" also personally received Gou and praised Gou as one of the world's greatest businessmen. When everyone signed the contract and started to build the factory, the "King of Understanding" also ran to the factory to shovel sand! He also participated in the ribbon cutting, and said: This is the eighth wonder in the world. It's as if this piece of land, this house, was sold to Gou by the "King of Understanding", giving enough face.
Not in line with the laws of business
But for businesses, this is not necessarily a good thing. If the city that Gou is going to is really suitable for building an assembly line factory, then it will certainly not be Foxconn's turn, and it is impossible for the king to offer such a high preferential condition. Because this does not conform to the general business rules, such as Yiwu's small commodity city, no one invited these small bosses to go. It's just that Gou taiming is in the midst of praise and gradually loses himself. As a foundry that does not have many core technologies, it is so valued by people, who is not moved?
The end of Foxconn
Based on this, it is not surprising that Gou Taiming said that "I give the mainland a meal to eat". What he didn't expect was that Foxconn's project in Wisconsin had undergone several twists and turns since it was announced in 2017, and its plans to build an LCD factory in Wisconsin had been changing. From its estimated investment of $10 billion to 672 million, and suffering from contract negotiations in October 2020, WEDC rejected Foxconn's tax subsidy application on the grounds that foxconn did not fulfill the contract for building a 10.5-generation LCD factory.
Jobs had already seen through it
Foxconn's investment in the United States is a win-win strategy, but why does the share of investment in the United States shrink again and again, and even lease out the factories it has built and become a "landlord"? In fact, as early as before, Obama had also invited Jobs to move Apple's production line back to the United States, but Jobs said "not want to, yes can't" and refused his invitation. Why is the iPhone factory inseparable from China? To put it bluntly, it is because Chinese workers are industrious, cost-effective, and the labor force is high-quality and abundant.
The Ningde era requires caution
At this time, it is not surprising to look at the Ningde era of "preparing to invest 5 billion US dollars (about 31.86 billion yuan) in North America and create 10,000 jobs". It must have been the other side that offered very favorable conditions. Therefore, the Ningde era needs to be more cautious. On the one hand, the general environment at this time is worse than foxconn's year, and the Ningde era should be careful of empty checks. On the other hand, the expansion of enterprises is inseparable from the support of the state. Now that I am rich, I should think more about taking on greater social responsibilities and creating jobs for the benefit of the people. (Yao)
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