As Foxconn plans to begin production in the United States by the end of next year, central China’s Henan province worries that its foreign trade volume could plummet.
A report published by the Henan government on Tuesday warns that the province’s foreign trade relies too much on Foxconn, a key supplier of Apple, and reduction of Foxconn’s import and export volume would likely have grave impacts on the province’s economy.
“At the moment, Foxconn’s share in [Henan’s] foreign trade is gradually declining. The province has yet to establish a diversified foreign trade pattern, and hence its ability to withstand risks of fluctuation in foreign trade is rather weak,” the report read.
Foxconn is Henan’s biggest employer, and accounted for 60.4% of the province’s total foreign trade volume in 2018, down from its peak of 67.5% in 2015.
Earlier this week, Foxconn said it will complete the construction of its Wisconsin factory and start production by the end of 2020.The company is also reportedly looking to move some of its production back to Taiwan, and has plans to assemble iPhones in India.
Write to Luna Lin at lunalin@kr-asia.com
