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The bustling city turned a \"ghost town\" after Samsung closed its last smartphone<\/a> factory in China, the Hong Kong-based South China Morning Post reported on Wednesday.
Samsung relocated production to Vietnam and India in large part as a response to the trade war between the world's two largest economies, it said, adding that the industry insiders consider that it reflected China's changing position in the global supply chain.
Last year Samsung inaugurated its world's largest mobile factory in Noida, near the Indian capital. The new facility will enable Samsung to double its capacity for mobile phones in Noida from 68 million units a year to 120 million units a year, in a phase-wise expansion to be completed by 2020.
China, regarded as the world's factory, held a virtual monopoly over the global supply chain of manufacturing in the last three decades.
US President Donald Trump launched the trade war with China last year demanding Beijing to reduce massive trade deficit.
Trump is also demanding an intrusive verification mechanism to supervise Beijing's promise to protect intellectual property rights (IPR) technology transfer and more access to American goods to Chinese markets.
While the two countries held several rounds of talks to end the trade war, the conflict, however, left trail of devastation for the Chinese manufacturing industry which was badly hit by the economic slowdown and steady fall of exports in the last few years.
Many of the employees who were forced to leave the Huizhou city factory commented on social media that they had left unwillingly, with some sharing photos of the latest smartphones and watches they had been given as part of their redundancy packages, the Post said.
With no new manufacturer in sight to take up the huge space left by Samsung factory, at least 60 per cent of the nearby businesses have already been closed, with more to follow in the coming weeks if the situation does not change, it said.
\"Samsung is the world's leading manufacturing enterprise. Its Huizhou factory had built an entire ecosystem of supply chains in Guangdong and nearby provinces in the past 20 years,\" said Liu Kaiming, head of the Institute of Contemporary Observation, which supervises working conditions in hundreds of factories in China.
\"At least 100 factories in Guangdong are going to close down. They can't make it without the Samsung's Huizhou factory, let alone those small shops and restaurants in the surrounding area,\" he told the Post.
The impact of the closure also stretches as far as the town of Changan in Dongguan city, some 100-km west of Huizhou, where thousands of migrant workers and executives of a factory once owned by the Shenzhen-listed Janus Intelligent Group, a leading Chinese robotics company, have had their hours significantly reduced.
\"Local consumer spending has got worse and is dying,\" said Li Hua, a convenience store owner. \"Our business has seen at least an 80 per cent drop compared to August. A large number of workers left from September.\"
\"Every store here - pharmacies, supermarkets, restaurants, convenience stores, internet cafes, rental houses, hotels and even adult stores - which one did not count on consumption of Samsung employees and workers?\" he said.
The Huizhou factory started life in August 1992, after the South Korean electronics giant signed a joint venture contract with the local government.
A year later, the company with a registered capital of USD 32 million was officially put into production, and since then has produced the latest and most popular consumer electronics, from stereos in 1990s, MP3 players in early 2000s and smartphones since 2007.
\"There are about 100 local residential buildings, six to seven floors, around 1,000 square metres, in Jinxinda complex; most were leased to Samsung workers,\" said Huang Fumin, a sales manager from Huizhou Star Real Estate Broker.
\"As soon as the Samsung factory closed, the price immediately dropped from 4.8 million yuan [USD 680,000] in August to 3.8 million yuan [USD 540,000], and still none of the investors are interested at this price,\" he said.
In its heyday in 2011, with Samsung's smartphone sales ranked No 1 in the world, its two factories in Huizhou and Tianjin produced and exported 70.14 million and 55.64 million mobile phones respectively.
According to Huizhou customs data, in October, the first month after the Samsung factory closed on October 3, exports from the city's enterprises dropped to 14 billion yuan (USD two billion), a year-on-year decline of 27 per cent, the report said.<\/body>","next_sibling":[{"msid":72475365,"title":"Infosys wins a five-year contract from Telenet","entity_type":"ARTICLE","link":"\/news\/infosys-wins-a-five-year-contract-from-telenet\/72475365","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":72476462,"entity_type":"ARTICLE","title":"Chinese city turns into ghost town after Samsung shifts operation to India, Vietnam","synopsis":"The bustling city turned a \"ghost town\" after Samsung closed its last smartphone factory in China, the Hong Kong-based South China Morning Post reported on Wednesday.","titleseo":"telecomnews\/chinese-city-turns-into-ghost-town-after-samsung-shifts-operation-to-india-vietnam","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":121,"shares":0,"engagementtimems":447000,"url":"https:\/\/ettelecom.indiatimes.com\/telecomnews\/chinese-city-turns-into-ghost-town-after-samsung-shifts-operation-to-india-vietnam\/articleshow\/72476462.cms"},"Alttitle":{"minfo":""},"artag":"PTI","artdate":"2019-12-11 18:38:37","lastupd":"2019-12-11 18:41:54","breadcrumbTags":["Samsung","Smartphone","trade war","China","Devices","ghost town"],"secinfo":{"seolocation":"telecomnews\/chinese-city-turns-into-ghost-town-after-samsung-shifts-operation-to-india-vietnam"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2019-12-11" data-index="article_1">
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熙熙攘攘的城市变成了一个“鬼城”三星关闭了最后一个智能手机工厂在中国,香港《南华早报》周三报道。
三星生产迁往越南和印度在很大程度上应对世界上最大的两个经济体之间的贸易战争,它补充说,业内人士认为,这反映了中国在全球供应链中的位置的变化。
去年三星就职在诺伊达,其世界上最大的移动工厂在印度首都附近。新设施将使三星将在手机在诺伊达的能力增加一倍,从6800万辆至1.2亿辆,每年在一个连续的阶段性扩张在2020年完成。
作为世界工厂,中国举行了一场虚拟垄断全球供应链的生产在过去的三十年。
美国总统唐纳德·特朗普去年推出了与中国的贸易战争要求北京减少巨额贸易赤字。
特朗普也要求一种侵入性的验证机制监督北京承诺保护知识产权(IPR)技术转让和更多进入中国市场的美国商品。
虽然这两个国家举行了几轮会谈结束贸易战争,冲突,然而,离开了中国制造业的破坏了经济放缓的严重打击,稳定的出口在过去的几年里。
许多员工被迫离开惠州城市工厂评论社交媒体,他们不情愿地离开,一些最新的智能手机和手表的照片分享给他们作为冗余包的一部分,《华盛顿邮报》说。
与看不到新的制造商三星工厂留下的巨大空间,附近至少60%的企业已经被关闭,与更多的跟随在未来几周内如果情况并没有改变,它说。
“三星是世界领先的制造企业。惠州工厂建立了一套完整的供应链系统在广东及周边省份在过去的20年中,“刘开明说,研究所所长当代观察、监督工作条件在成百上千的工厂在中国。
“至少100家工厂在广东要关闭。他们不能让它没有三星的惠州工厂,更不用说那些小商店和餐馆在周围的地区,”他告诉《华盛顿邮报》。
关闭的影响也延伸到在东莞市长安镇以西约100公里的惠州,成千上万的农民工和高管的工厂,一旦所有的上市Janus智能集团,中国领先的机器人公司,小时显著降低。
“当地消费者支出有更糟糕的是,死亡,”李华说,一家便利店所有者。“我们的业务已经至少一个8月相比下降80%。大量的工人从9月离开了。”
“每个商店,药店、超市、餐馆、便利店、网吧、出租房屋、酒店甚至成人商店,哪一个没有指望消费三星员工和工人吗?”他说。
惠州工厂开始生活在1992年8月,韩国电子巨头后与当地政府签订了合资合同。
一年之后,该公司的注册资本3200万美元正式投入生产,从此产生了最新的和最流行的消费电子产品,从1990年代的音响、MP3播放器自2007年以来,在2000年代早期和智能手机。
“有大约100当地居民住宅,六到七层,约1000平方米,在Jinxinda复杂;大多数是出租给三星的工人,”黄说福民,销售经理从惠州星房地产经纪人。
“一旦三星工厂关闭,立即下降价格从8月份的480万元人民币(680000美元)到380万元(540000美元),而且还没有一个投资者在这个价格有兴趣,”他说。
在2011年的全盛时期,三星智能手机销量居全球第一,其在惠州和天津两家工厂生产和出口分别为7014万和5564万手机。
惠州海关数据显示,今年10月,三星工厂关闭后的第一个月10月3日从城市的企业出口下降到140亿元(二十亿美元),比去年同期下降27%,报告说。
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