Early signs that Southeast Asian nations are trumping China as a home to low-cost manufacturing are likely to gather momentum in the next few years, costing the Middle Kingdom its status as the world’s factory within the next five to 10 years, according to Daiwa Capital Markets.
Foxconn’s plant in Zhengzhou, in central China’s Henan province, has been hit by a worker strike, according to China Labor Watch. The walk-out occurred on Friday at 1pm local time, “involved three to four thousand production workers” and therefore “multiple iPhone 5 production lines from various factory buildings were in a state of paralysis for the entire day.”
Toyota Motor Corp and Nissan Motor Co Ltd are curtailing production in China following the worst anti-Japan protests in decades, company officials and media reported on Wednesday, putting Toyota's 1 million-unit China sales target at risk.
This week Samsung admitted illegal labor practices at its Chinese suppliers, joining Apple as another global brand that's plagued by labor issues in China. Meanwhile, Foxconn is reported to be looking to open factories in the U.S. Also related, Fujitsu said its highly automated laptop factory in Shimane, Japan only needs 16 workers at each assembly line vs. 120 at its Chinese supplier. So, where is electronics manufacturing going?
A riot at a Hon Hai electronics factory left at least 40 people injured, sparking a response by thousands of police and highlighting how Chinese manufacturers increasingly are getting squeezed by restive workers and a slowing economy.