See More on Facebook

Economics

Foxconn’s proposed IPO a reflection of China’s economy

Industrial manufacturer Foxconn’s possible listing on the Shanghai Stock Exchange has investors interested and signal the changing nature of China’s economic reform.


Written by

Updated: February 16, 2018

One of the largest employers and taxpayers in China, Foxconn has taken a concrete step forward to applying for an initial public offering in one of the largest capital markets in the world. Insiders are optimistic about it being listed on the Shanghai Stock Exchange in the foreseeable future.

Foxconn, also known as Hon Hai Precision Industry, is a multi-national manufacturing company headquartered in Taiwan but with factories throughout mainland China including its largest in Shenzhen where over 200,000 people are employed by the company.

The manufacturer is responsible for consumer products from some of the largest name brands in the world including Apple, Sony, Microsoft, Nintendo, and Amazon.

IPO Application 

China has markedly strengthened its control and examination of IPO applications, even many capable applicants have been persuaded to quit or failed to pass the CSRC’s qualification checks.

That the securities regulator has given the green light to Foxconn’s prospectus shows decision-makers are laying considerable stress on manufacturing industries, as well as the fitness of Foxconn’s business.

It also speaks to Xi Jinping’s promise to liberalize the economy and encourage more FDI into the Chinese market.

Labour Controversy

The IPO is also a sign of the progress that the company has made since it faced pressure in 2010 when 11 assembly line workers committed suicide in different branches throughout China – drawing criticism that the company was running a sweatshop.

Chinese media heavily criticized the company and urged the government to weed out ‘lower-end’ industries and move up the value chain.

International watchdog Human Rights Watch highlighted workplace abuses at Foxconn as part of its call on the Chinese government to allow more freedom of expression so that unfair labour practices can stop.

Eight years on, Foxconn has not only survived, but also boomed. It has remained the main parts provider for major global brands in the fast-changing information technology and electronics industries over the years. The government has also established an auditing system in conjunction with the company to ensure improvements in the workplace environment.



Enjoyed this story? Share it.


Cod Satrusayang
About the Author: Cod Satrusayang is the Managing Editor at Asia News Network.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics

Cooperating on energy in face of tariffs

At Houston oil and gas industry forum, US, China executives discuss future. The US energy industry expects a strong long-term energy relationship with China, a US energy official told US and Chinese oil and gas executives the day after China announced a retaliatory 10 per cent tariff on US natural gas. Steve Winberg, US Energy Department assistant secretary for fossil energy, on Wednesday assured the energy executives that the US has never revoked a liquefied natural gas (LNG) export authorization, nor plans to do so. “Some potential exporters and financiers have expressed concern that the US may rescind or revoke LNG export authorization. Let me be very clear that these concerns are unfounded,” Winberg said on Wednesday at the opening of the two-day 18th US-China Oil and Gas Industry Forum in Houston. The forum has been a collaboration of the US Energy Department, Ch


By Cod Satrusayang
September 25, 2018

Economics

Swift assistance needed to rehabilitate Hokkaido’s quake-stricken industries

To realize Hokkaido’s post-quake rehabilitation, it is indispensable to rebuild its industries. A half month has passed since the Hokkaido earthquake, which registered the highest level on the Japanese seismic intensity scale of 7. A power blackout that spread to all parts of the prefecture has been resolved. The No. 1 unit at the Tomato-Atsuma thermal power plant — a facility that plays a central role in the supply of electricity there — has been brought back on line. The government has withdrawn its request for power-saving, and neon lighting has returned to flourishing areas in Sapporo. However, scars from the earthquake have not yet healed. Even if the amount of direct damage, including that caused to roads, rivers and forest land, is calculated alone, the figure exceeds ¥150 billion. There are still many disaster victims in evacuation centers. T


By The Japan News
September 25, 2018

Economics

Moon, Trump discuss ‘corresponding measures’ for NK denucelarization

South Korean President Moon Jae-in arrived in New York on Sunday for a bilateral summit with US President Donald Trump that is partly aimed at brokering a second US-North Korea summit. South Korean President Moon Jae-in and US President Donald Trump on Monday discussed possible ways to reward North Korea for its denuclearization measures that will apparently include a second US-North Korea summit. “The leaders agreed to continue communicating closely about corresponding measures,” said Kim Eui-kyeom, a spokesman for South Korea’s presidential office Cheong Wa Dae. In their bilateral summit held in New York, the leaders of South K


By The Korea Herald
September 25, 2018

Economics

Disruption seen from auto parts duty in US-China trade war

US tariffs on Chinese auto parts will probably result in higher prices and could disrupt the global automotive supply chain industry. The Trump administration has imposed a new 10 percent tariff on $200 billion worth of Chinese goods that takes effect on Sept 24. Beginning on Jan 1, the tariffs will increase to 25 percent. China retaliated with $60 billion of new tariffs on US products. The new levies target more than 100 automotive products including engines, gaskets, rubber seals, tires and transmission shafts. Tariffs are basically taxes on the consumer, and all costs increases within the supply chain will eventually be passed along to the consumer, according to Peter Nagle, senior automotive analyst at IHS Markit. “In the short-term, suppliers might absorb some of the cost of the tariff but eventually they will have to raise prices or resource product from elsewhere, which also will rai


By China Daily
September 24, 2018

Economics

India launches world’s biggest healthcare programme

Prime Minister Narendra Modi launched India’s ambitious healthcare program on Sunday. Deemed the “world’s largest government-funded healthcare programme”, the scheme will cover half a billion people through its network of hospitals and support services. Speaking at the event, the PM said that the number of beneficiaries is equivalent to the total population of the United States, Canada and Mexico or the entire European Union. “This is a major step taken to fulfil the vision of providing better healthcare facilities to the poorest of the poor and to those standing last in the queue,” the PM said. Following the launch, the PM informed the gathering that the scheme covers diseases such as cancer, heart diseases, kidney and liver problems, diabetes and over 1300 various ailments. “The treatment of the diseases can not only be done in government hospitals but also private hospitals,” said


By Cod Satrusayang
September 24, 2018

Economics

US exempts Korean steel from import tariff

The move is seen as a positive signal for the local steel industry. Steel products made by South Korea’s SL Tech has been excluded from the US’ steel tariffs, marking the first case of exemption since the US imposed a quota on Korean steel shipments this May, industry sources said Thursday. The US Commerce Department earlier this week accepted US medical device manufacturer Micro Stamping’s request for a tariff exemption on ultrafine steel tubes imported from Korean steel company SL Tech. Micro Stamping uses ultrafine steel tubes made by SL Tech to produce medical equipment. Korean steelmakers viewed the decision as a positive sign of a higher possibility of tariff exemptions, while remaining cautious over whether the same decision would be applied to steel products used for construction and household appliances.


By The Korea Herald
September 21, 2018