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Foxconn In China Case Study

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China’s success in consumer electronic manufacturing can be traced to the creation of special economic zones in the early 1980s, intended to increase “foreign capital and boost exports as the means to integrate regional and global economies” (Chan and Seldon 2013, 103). This capitalism was a sharp departure from the previous Communist based economic policies that dominated the country for decades (Ya and O 'Donnell 2017). The Shenzhen Special Economic Zone (one of four) was established in May 1980 adjacent to the border with Hong Kong, which was experiencing its own economic boom (Ngai and Chan 2012, Ya and O 'Donnell 2017). Manufacturing in the Shenzhen Economic Zone grew exponentially after the Chinese government began offering …show more content…

Grain dependent Henan Providence, which has the largest population of any providence, is largely excluded from the financial support provided to coastal areas of the country with large ports (French 2008). The Zhengzhou factory, however, is an outlier: a global symbol of foreign capitalism and economic prosperity in a region of China otherwise extremely poor (Barboza 2016). Zhengzhou is inseparably linked with the Chinese government; the Foxconn factory there provides a case study of exclusive economic incentives provided by the government to the company. Based on documents obtained by the New York Times, these benefits are unlike anything else in the world. For instance, the Zhengzhou government spent $1 billion dollars on housing for “iPhone City’s” six million people, most of them Foxconn workers. The $600 million factory itself was largely financed by the government, and taxes were eliminated for Foxconn for five years. To facilitate rapid exportation of electronics, customs is located directly outside the factory’s perimeter. An airport is nearby, in which the Zhengzhou government will be pumping $10 billion into. To staff this 2.2-mile factory site, the government assists in recruiting workers and providing formal training. Ultimately, state recruited workers in state subsidized housing not only benefits

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