There have been numerous times throughout history where a corporation’s departure causes an entire city to disappear. Huizhou City is the latest town to be affected by a significant closure. The Samsung Corporation shut down its ageing factory of thirty years in the Chinese City while moving their operations over to Vietnam and India. Not only has this created a ghost town in Huizhou City, but it also marks the first significant fallout from the trade war between China and the United States. As of Wednesday, December 11, 2019, all Samsung operations in the communist nation have ceased.
The Samsung Corporation is the first significant tech conglomerate to relocate its operations from China. It’s the lengthy response to the ongoing trade war between the United States of America and China, which are the two largest economies worldwide. Samsung, who has sided with the United States, hopes that this decision will force a change of position on global supply chains by Chinese officials.
Samsung began its relocation efforts in 2018, where they assisted in the development of a new manufacturing factory in Noida. It’s the world’s largest manufacturing plant for mobile devices, allowing Samsung to double its unit capacity every year. Their former factory maintained in China could complete 68 Million Units. However, with the new Noida Manufacturing Plant, that number increases to 120 Million Units. This has come as a significant blow towards China, which has been considered the world’s factory for the last four decades. Unfortunately, in those four decades, they created a monopoly on global supply chains. This is something that President Donald Trump stopped, which has allowed Samsung to move forward with their relocation efforts. Subsequently, that works better for the average mobile phone consumer.
China Vs. the United States
President Donald Trump hasn’t slowed down his efforts in the trade war, with him recently requesting that verification mechanisms be applied over Beijing. This would enable America to protect their intellectual properties, which has been a significant issue in China. They have been able to copy Western Products for the last forty years, which includes everything from vehicles to cellphones. Subsequently, China would have to begin accepting American Goods into its economy.
This would mark the end of the trade war and allow for the United States to become the dominant world leader once again. Unfortunately, this will require several rounds of detailed debated for a conclusion that can be met. Regardless of what happens, the devastation left in the wake of this trade war will be extensive.