News Desk
ZHENGZHOU — In recent months, Foxconn’s factories across China have been at the center of waves of mass layoffs and resignations, underscoring growing economic challenges in the nation’s manufacturing sector. The company’s sprawling campuses, once bustling hubs of industrial activity, are now marked by long queues of workers clutching their belongings, many accompanied by their families, as they process resignations and depart.
In Zhengzhou, one of Foxconn’s major manufacturing sites, Factory Avenues have seen large crowds of employees lining up from dawn until midday to formally leave their positions. Videos circulating on social media reveal a stark reality: Foxconn dormitories emptied out, their rooms and windows abandoned, while the once-lively streets nearby, filled with vendors and bustling activity, now resemble ghost towns.
Speculation has mounted on platforms like Weibo and Zhihu about the scale of the downsizing, with some suggesting that Foxconn may exit China altogether. The electronics manufacturing giant, which operates more than 40 facilities across China in key regions such as the Pearl River Delta, Yangtze River Delta, and Bohai Rim, has become a symbol of the shifting tides in the global industrial landscape.
Foxconn’s adherence to labor laws and its reputation for providing timely wages and fair contracts have historically set it apart from many domestic factories. A long-term employee of nearly 17 years noted that the company ensures proper overtime pay, converts unused leave into compensation, and maintains regular salary payments even during holidays. In contrast, workers in other domestic industries often face exploitative conditions, including excessive working hours and wage disputes.
This disparity has raised broader questions about labor practices across the region. While companies like Honda, Tesla, and Toyota offer generous severance packages, such as “N plus three” or “N plus six,” other domestic firms struggle with basic compliance. The situation highlights Foxconn’s role as both a lifeline for many workers and a bellwether for China’s broader economic health.
The repercussions of Foxconn’s downsizing extend far beyond its factories. Labor intermediaries and small businesses that once thrived on Foxconn’s workforce are now struggling. In many cities, brick-and-mortar stores report dwindling customers, streets are noticeably less crowded, and the local economy appears stagnant. Observers note that many workers, now unemployed, are returning to their hometowns or seeking opportunities elsewhere.
While China’s industrial hubs face mounting pressures, neighboring economies are surging ahead. Japan’s automotive giants, such as Toyota and Honda, are enjoying record profits despite declining car sales in China. South Korea’s export growth and high office occupancy rates reflect robust economic activity. Meanwhile, Vietnam has emerged as a major beneficiary of shifting supply chains, with significant investments from multinational corporations like Samsung and Apple. Apple alone has funneled over 100 billion yuan into Vietnam over the past five years, with plans for an AI center in Ho Chi Minh City.
Foxconn’s challenges are emblematic of a deeper shift in global manufacturing. Analysts suggest that the company’s struggles are part of a broader trend, as foreign businesses increasingly view China as a less stable environment for investment. In Suzhou, once a manufacturing powerhouse, over 20,000 businesses have shuttered or suspended operations, leading to soaring unemployment and economic stagnation. Similar stories are emerging from Beijing, Shanghai, Guangzhou, and Shenzhen, where foreign capital is retreating, and migrant workers are leaving in droves.
This economic turbulence stands in stark contrast to the success of neighboring economies, whose booming industries and surging stock markets highlight China’s waning position in the global industrial order. As multinational corporations realign their supply chains, China faces an urgent need to address the underlying causes of its economic slowdown.
The mass exodus at Foxconn may be just one chapter in a larger narrative of economic upheaval. For China to maintain its role as a global manufacturing leader, it must adapt to these shifting dynamics and work to rebuild confidence among both domestic and international stakeholders.
