Foxconn hedges its bets: US and China will make up, but diversify just in case
Foxconn chairman and CEO Young Liu believes the manufacturing megalith will be able to continue building components in China for use in electronics produced by US companies, despite testy relations between the nations' governments.in his first interview with international media, Liu was enthusiastic about the durability of Foxconn's business model – but admitted that deteriorating US-China relations keep him up at night.
He said planning for geographic diversification of the Foxconn's facilities has commenced in case the geopolitical climate worsens and threatens the gigantic business. Or perhaps they're more than underway: during the interview Liu acknowledged some Foxconn production lines have already moved to places like Mexico and"It depends whether the products have national security concerns," said Liu. If so, those"will be the first batch to move." Governments push local businesses to de-risk by reducing reliance on China, and those that are Foxconn customers then ask the Taiwanese titan to move their work, he said.
The CEO thinks that China and the US will eventually"reach a balance" in their relationship, and suggested that if the US wants to stay ahead of China in terms of technology it should"move faster."
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