China’s Henan province frets as Foxconn’s production lands overseas

The Taiwanese electronics manufacturer is Henan’s largest employer.

June 28, 2018; Mount Pleasant, WI, USA; President Trump (left) and Foxconn chairman Terry Gou (back) and Softbank CEO Masayoshi Son are shown during the ceremonial groundbreaking for Foxconn's factory in Mount Pleasant. The Taiwanese-Based firm has said “categorically” that it remains committed to investing the full $10 billion in what it has named the Wisconn Valley Science and Technology Park, and to creating 13,000 jobs. The factory will create display panels out of immense sheets of wafer-thin glass. Mandatory Credit: Mark Hoffman/Milwaukee Journal Sentinel via USA TODAY NETWORK

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.

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