New Foxconn deal shows how Chinese provinces are stepping up to entice overseas firms
- Foxconn will splash out on EV projects and set up robotics industrial bases in mainland China amid geopolitical risks and supply-chain disruptions
In the latest bid by local governments across China to retain overseas businesses, authorities in Henan province have humbly appealed to Foxconn, urging the electronics manufacturer to maintain its investment confidence in the region.
The exhortation comes amid a growing trend of supply chains shifting away from China, while the world’s second-largest economy is also grappling with weak investor confidence both at home and abroad amid geopolitical risks and limited growth prospects.
“[I] hope that Foxconn will remain confident in its investment in the region, focusing on the cultivation of new industries and the development of new technologies ... Together, we will build a high-end manufacturing industrial chain and an ecosystem for strategic emerging industries,” Henan governor Wang Kai said on Tuesday.
He also vowed to establish a regular communication mechanism and to strengthen comprehensive service guarantees to create a better environment for the development of Taiwanese enterprises in Henan.
Home to the world’s largest iPhone factory in Zhengzhou, Henan has faced pressure since Apple intensified its diversification efforts last year. This shift followed production challenges in late 2022, when a worker exodus due to coronavirus fears and subsequent violent protests over employee allowances disrupted Foxconn’s operations.