China elation from billion-yuan Foxconn deal prompts state media warning: don’t be ‘smug’
- Apple’s manufacturer in China bucked a trend of declining investment, but ‘complicated’ environment seen making slower growth ‘the new trend’
When the news broke that China’s Henan province had managed to lock down a billion-yuan deal with Foxconn – famously known as Apple’s manufacturer in China – a veritable frenzy of excitement swept through the media and revved up market watchers desperate for any sign of economic momentum.
The Economic Daily said in a commentary on Friday that while panic should not ensue when businesses retreat from the country, it was also important to avoid being “smug” when they increase investments.
China’s manufacturing industry “still has irreplaceable advantages” but “must also enhance its core competitiveness and move up the value chain”, it said.
The message came at a time when the world’s second-largest economy has been struggling to invigorate investors both at home and abroad, as growth prospects have been weighed down by challenges from geopolitical tensions and a series of structural internal issues such as a property market crisis and shrinking workforce.
