Comments by "Louis Giokas" (@louisgiokas2206) on "Largest Tech Supplier Foxconn Is Moving $40BN Production Line Out of China: 320K Employees Laid Off" video.

  1. I wonder if they even have five years. I don't think that there will be losses, or perhaps minimal ones at best. Don't forget, industrial equipment is constantly being modified, repaired and upgraded. Foxconn is a very experienced contract manufacturer with operations in many countries. They know how to handle this. Most of the manufacturing in China is low tech. They assemble the iPhones, for example, but the components come from all over the world (including the US) and by cost, the phone assembly is a small percentage of the total. Have you seen the pictures and videos of the iPhone assembly lines Foxconn has in China. Row, upon row of manual assembly stations, staffed by peasants from all over. These are not that difficult to move. The Foxconn exec who said, near the beginning of the video, that he could move anywhere quickly was correct. Another interesting note is that many private, and some state owned, manufacturers in China are opening plants in other countries. I recently bought three battery powered lawn tools. The company is Chinese (although the trade name is not, which should be a signal) and two of the tools were made in Vietnam. Looking at the company website, and it seems they are also opening a plant in the US. One of the reasons for this activity is the situation in China vis-a-vis wages and the business climate. Another may be that these companies want to get their capital out of the country, and this is probably one of the only ways they can do it.
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  2.  @donaldkasper8346  Can't argue with that.
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  3.  @donaldkasper8346  So, if you are correct, what are Apple and Tesla doing?
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  4.  @thanakonpraepanich4284  You seem to have forgotten the two pillars of trade with China. The first was cheap labor, and the second was a large new market to sell into. Chinses markets should have been a growth story for western companies that had saturated their own markets. That is normal business and has been going on for a long time. That is why they always look for new markets. The most important thing is that the companies don't give a cr*p about who you are. The whole debate is debased when we have China on one side being all nationalistic and effectively controlling the whole economy on a national level and then this is opposed to companies who actually do the business and invest the money. The fact that we are just learning, at great cost, is that you cannot mix communism with capitalism. Read the theorists. So, I stress again, there is no reason to stay bullish on Chinese companies. Capital is not national. Capital serves individual investors. If one place ceases to serve them than it will migrate somewhere else. Have I said it enough ways for you to understand?
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