Foreign direct investment in China totalled 693.2 billion yuan ($98.46 billion) from January to November this year, down 7.5% from the same period last year, data from the commerce ministry showed on Friday. Actual investment from Switzerland, the United Arab Emirates and Britain into China in the January to November period increased by 67%, 47.6% and 19.3% respectively compared with the same period last year, according to the ministry.
This paints a really grim picture for China's economy as they might not sustain the job market if only another year the FDI doesn't improve. All these other countries which are increasing investment into the communist nation aren't even as big as Apple, Microsoft, Nvidia and other giants from USA.
So, the big question why are these US tech giants coming out of China? The simple answer answer is lower labour costs elsewhere, notably in India.
All in all, the talks about global power shift are meaningless, USA will be a giant till the big companies don't move out from there, which is a far fetched possibility as US is a democratic nation with much more freedom and better business conditions with a population that knows to spend.
I have to imagine the US tariffs are also making Chinese businesses much less profitable, which would have investors seeking out greener pastures.
Definitely. Tariffs are intended to crumble any challenge to US economic supremacy.
But companies like Apple is exempted of tariffs even if they manufacture in India or china.
Tariffs are especially against cheaper and exclusive china or India made products.
Good point. If they're exempt from the tariffs, you might expect operating in China to be even more profitable, since the tariffs will have suppressed wages and input prices.
Here's again Apple might know it better because they have been relocating to India for manufacturing aggressively in the past few years. I can only confirm that labour in India at least 5x cheaper than that in China as of now.