Colombo [Sri Lanka], December 5 : The abrupt shutdown of Foxconn's Henyang Hong Fujin Precision Industry facility on September 30, 2025, has sent tremors through central China's industrial heartland.
Once home to 30,000 workers and a major contributor to the regional economy, the now-abandoned complex reflects a deeper malaise in China's manufacturing sector, a crisis rooted in corruption, erratic governance, and dwindling investor confidence, as reported by Daily Mirror Online.
According to Daily Mirror Online, for decades, China thrived as the "world's factory," attracting multinational giants like Foxconn with cheap labour and state-backed infrastructure. The company, Apple's largest supplier, once accounted for over 80 per cent of Zhengzhou's exports and half of Henan's total.
But when Foxconn began relocating operations to Vietnam and India, local economies plunged. Henan's mobile phone exports dropped by 60 per cent in early 2024, while the province's overall trade shrank by nearly a quarter. Formerly bustling factory towns now resemble ghost cities, as displaced workers struggle with unstable gig jobs.
While some analysts attribute Foxconn's retreat to slowing global demand, China's own policy failures as the core cause. Years of arbitrary regulations, rising costs, and the chilling effects of the US-China trade war drove companies toward more stable markets. Apple's growing distrust of China's tightening controls only accelerated this exodus. Nations like Vietnam and India, offering transparency and policy consistency, have emerged as safer manufacturing hubs, as cited by Daily Mirror Online.
The fallout has been devastating for Chinese workers. Foxconn, despite its controversial labour record, was considered reliable compared to smaller "black factories" that now dominate workplaces notorious for wage theft, unsafe conditions, and exploitation. Corruption and weak regulation have allowed such abuses to flourish unchecked.
As multinational firms continue to withdraw, the once-glittering promise of China's economic miracle fades. The CCP's obsession with control and its inability to reform a decaying governance model have left millions without security or hope, as reported by Daily Mirror Online.
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