Recently affected by the severe COVID in India, many companies, including Foxconn, that have set up factories in India, have to again transfer orders to factories in mainland China for production. Many supply chain manufacturers who were forced to follow Foxconn and Apple to set up factories in India suffered heavy losses in this wave of COVID.
Foreign-funded enterprises can drive China's industrial chains, and can quickly destroy these industrial chains. In recent years, due to Sino-US trade frictions, many Chinese high-tech companies have been blacklisted by the US. In response to the White House's call, Apple wants to reduce its dependence on the mainland market and requires foundries to open factories in India. At the same time, Apple took the initiative to disrupt the industrial chain. For example, Oufeiguang was a supplier of camera modules, and Apple just found an excuse to kick it out of the supply chain. Oufeiguang’s stock price and performance plummeted in an instant. Foreign companies like Apple and Foxconn pursue the maximization of profits. If they want the healthy development of the domestic industrial chain, they still have to cultivate their own leading companies.
It is very important to cultivate one's own leading enterprises and drive the healthy development of the local industrial chain. Many small and medium-sized enterprises have their products in the middle link and need to rely on some large enterprises. For example, Huawei's leading role in the domestic industrial chain is obvious. The difference between BOE’s mobile phone screens and Samsung’s screens has been obvious for a period of time, but Huawei insisted on purchasing BOE screens to give it opportunities to continuously improve and enhance the quality and performance of its products. Now BOE’s achievements are obvious to all. Huawei is a Chinese-funded company. After being sanctioned by the United States, Huawei will still purchase domestic products and the supply chain will be much less affected. Don't underestimate a mobile phone supply chain, the entire industry may be hundreds of billions of yuan, and it is related to the employment of many people.
At present, many domestic mobile phone companies have developed and can compete with Apple and Samsung mobile phones in the international market, but there are still weak links in the domestic supporting industry chain. For example, although Huawei's mobile phones once occupied the largest domestic share, sales fell rapidly after being sanctioned by the United States. Now domestic companies are working hard in the semiconductor field, hoping to establish a more complete industrial chain and eliminate dependence on the United States. Of course, in addition to supporting companies that need to work hard, terminal mobile phone companies also need to give supporting companies opportunities. Otherwise, there will be products, but there will be no market, and it will be difficult for the domestic industrial chain to develop.
So this wave of India's COVID is so serious, it may also be a potential opportunity for us. Because they need to be able to control the COVID to develop their economy. Now the people across the country are in dire straits, and many European and American demand for touch screens and other electronic products will be transferred to the Chinese market. This may greatly boost our economy in the second half of the year.
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