Remember that photo from 4 months ago?
The four hands are interlaced and clasped together. The white-bearded Modi smiled happily, and Liu Yangwei next to him was even brighter.
Subsequently, Hon Hai Group (Foxconn), of which Liu Yangwei is the chairman, tweeted:
Chairman Liu Yangwei is visiting India, and today (March 3) we had a warm meeting with the Honourable Prime Minister Modi to brief him on the good progress we have made in the country. Foxconn will continue to build an ecosystem in India where all our stakeholders can share, collaborate and prosper.
Modi immediately retweeted the tweet and said: "My meeting with Mr. Liu was a pleasure and our discussions covered various topics to strengthen India's tech and innovation ecosystem.
But four months later, the original smiling face turned into a bitter face.
Foxconn officially announced on July 11 that it withdrew from the Indian joint venture chip plan. The joint venture with India's Vedanta Group, which ended up to $19.5 billion, was one of Foxconn's largest projects overseas.
Such a big project, just say do it, there is no doubt that this is a slap in the face to Modi. Looking at the Reuters commentary, one of the sentences said: Modi's Indian chip manufacturing plan faces a serious setback.
1, this may be Modi's most valued joint venture project. Last year, Modi praised the construction of the joint venture factory unceasingly praised it as an "important step" to boost India's chip-making ambitions.
2, the factory was built in Modi's hometown of Gujarat, which naturally became an important achievement promoted by the Modi government. Modi started from Gujarat, when he studied China, all kinds of investment attraction, stunned to make Gujarat into India's version of Guangdong, Foxconn came to participate in the grand event, how interesting.
3, Therefore, when Liu Yangwei visited India in March this year, Modi must take time out of his busy schedule, personally receive him, and shake hands warmly with Liu Yangwei.
But now, Foxconn is suddenly not working.
Foxconn also has unspeakable suffering.
According to the information disclosed by foreign electricity, in the final analysis, it is still a question of money.
Foxconn's factory is built, but such factories generally require huge government subsidies. Foxconn went to India and also looked at India's $10 billion semiconductor subsidy program.
But Foxconn's 28-nanometer chip factory, which is said to be not up to India's standards, naturally does not receive billions of dollars in subsidies. Are you stupid when the Indian government is stupid?!
But who does the loss-making business? After all, Foxconn is an enterprise, and what enterprises value most is earnings, and watching things drag on is a bottomless pit. Foxconn had to break my wrist, and I quit.
Although I must have lost a lot of money, but now decisively stop loss, it should be a great luck in misfortune.
But for Modi, it was indeed a major blow.
Needless to say, Modi loves face very much, and more importantly, Lizi. According to India's original plan, in the next 4 to 5 years, India will become the world's largest semiconductor manufacturing base.
Ambitious plans, now definitely going yellow.
More important is the demonstration effect. Even companies like Foxconn, large international enterprises personally introduced by Modi, have finally broken back in their hometowns, do other companies dare to come to India?
Don't forget that the situation of the Chinese Xiaomi company in India, making money is not fake, but it seems to be fined more. Don't forget that Japan's investment in India is delayed, the project is delayed, the loss of money is certain, and the Japanese are also bitter and cannot say.
I said at the time, fortunately, it was the Japanese high-speed railway and not the Chinese high-speed railway that won the Indian project at that time, so let the Japanese see the efficiency and treatment of India.
Of course, Foxconn is Foxconn after all, there is still room for it, but it is only said that the joint venture with the Vedanta Group is not dry, one is different, each is happy, and it is not ruled out to find other Indian partners.
Reasons, two are not excluded.
First, Foxconn still has a lot of investment in India, such as thinking of producing Apple mobile phones in India, the chip project is yellow, and it has to keep other projects, naturally dare not offend India.
Second, Foxconn is not dead, after all, India claims to come up with $10 billion in chip subsidies, Vedanta can't, I will find an Indian company to try a joint venture, the dots are in place, maybe it will be.
Finally, what to see?
It's still three points.
1, India really has a set.
A set of rhetoric, the sky is falling. So, for various considerations, some multinational companies are happy to go to India. In the end, there must be those who make money, but there must be those who make money but lose more, and those who are closed and beaten dogs, and there are bitter ones who cannot be spoken. A hundred kinds of India, a hundred kinds of life.
2, come out to mix always have to pay back.
If you don't have diamonds, don't do porcelain work. If you want to take the Indian government's subsidy, first weigh yourself a few pounds and taels. Is India really a copy of China? Of course, for India, the business environment is very important, the reputation of the "foreign cemetery" has spread, who dares to go to India?
3, we must be confident and sober.
We must be confident that China's development to today, all kinds of development advantages, especially the advantages of the industrial chain, Vietnam can not compare, India can not compare. This is also the reason why foreign capital continues to increase China's weight. But we must be more sober, after all, India and other countries are also catching up, and there is a cost advantage. International competition, if you do not advance, you will retreat. We have no choice but to move upwards.
Finally, bless India and Foxconn.