Articles like that happen when political journalists write about economic things. The facts provided are mainly that Foxconn has a) a new growth strategy and... let me think... yeah, that's about it.
But yes, a 10 billion investment plan in indonesia surely is a sign that the iPhone 5 (the only electronic device Foxconn is assembling) isn't selling as good as before. Would Apple stock have risen by 2,4 percent the article would have been about greater growth in iPhone market share in Brazil and the HUGE opportunities manufacturing sites in Indonesia would offer.
Just to end up with the fact that Foxconn flees China because it's a bad place to be. Business as usual in journalism and stock exchanges. :-)
What do you mean?
"Notable products that the company manufactures include the iPad, iPhone, iPod, Kindle, PlayStation 3 and Wii U."
The author, Gordon Chang, is a political analyst. I suspect this may be colouring his perception.
Q: When Will China Collapse?
A: Within this decade—in other words, by 2011.
I think "collapse" is a strong term, but changes will undoubtedly happen in the coming years. Companies and investors are generally very keen to avoid uncertainty. FoxConn is simply doing what any sensible multinational ought to do by mitigating the risks of having all its eggs in one basket.
Not surprising at all. Stock prices frequently rise and fall dramatically due to rumors that are completely baseless. This one, at least, has some facts behind it (which may or may not have been interpreted correctly).
People see "hiring freeze" and instantly associate that with slowing down production or growth.
The modern take on China-Taiwan relations is free trade and cross-strait economic cooperation. The Chinese have a not-very-hidden goal of having this lead to eventual political reunification. The Taiwanese are much more ambivalent about this concept, but are embracing whatever option leads to continued de facto independence. The Taiwanese-independence issue is no longer the hot button topic it once was.
In short, so long as Taiwan makes no overtures towards actual independence, this relationship is stable, with lifting trade interference being a publicly stated goal on both sides.
Source: I'm a Taiwanese expat.
But, just hypothetically speaking :), if the PRC was hellbent on absorbing Taiwan, they should simply let the Senkaku conflict escalate. In that case, the KMT could believably argue that they have no choice but join sides with the PRC, no matter the democratic ambivalence about it. The reason I could see this happen is because this would be the last chance for the PRC to actually achieve unification. It's certainly not going to happen democratically.
Not that this would be of much interest to Foxconn; but being in the general area would suck in the case of a conflict. If Terry Gou really moves robot production to Taiwan out of all countries, I guess he agrees with you that there's no imminent danger (which I hope).
If that happens, the effects on China are going to be so huge that they'll make business decisions made today pretty much irrelevant.
It for sure makes a great negotiating tactic to extract maximum leniency from the Chinese Govt. Besides, Foxconn is one of the poster boys for Chinese manufacturing might and the Govt. won't let them shut shop over night. It's just bad PR!
In any case, I tend to agree with the sentiment that you'd better be seen as sane if you want the rest of the world to include you in the global economy.
Apple produces the CPU, procures the screen, the aluminum, the glass, the memory and the glue. At the scale they operate, if they didn't, they won't be able to keep the production pipeline running.
Gou has also been reported saying he wants to invest in a million robots at his factories.
Humans are structurally unemployed
Sigh. Daily movements in short term market liquidity do not a causation of disparate events make. Movements happen in stock markets everyday for no apparent reason - and using these to buoy your point just shows you how you don't understand financial markets.