Big tech companies are looking forward to moving out of autocratic China. The information technologies sector has always been the first to respond to the tightening of government control. Deteriorating relations between liberal democracies and Beijing only make the situation worse for the local IT industry. Sanctions against China only pushed big tech firms to relocate their production facilities to other countries. Taiwan’s electronics manufacturing giant, Delta Electronics, is one of the main power component suppliers to Apple and Tesla. Currently, it actively lays off staff at its Chinese factories, moving significant production to Southeast Asia and India at the same time. Delta Electronics chairman, Yancey Hai, says the company’s staff in China has been reduced by 40% and is set to be cut by 90%. This means that only one in ten employees of Delta Electronics will remain in China.
It has not been the only tech company to swiftly move out of the country. Other firms also follow suit. However, they do it quietly, fearing the wrath of China’s authorities who can give them a hard time. The local regime and sanctions are not the only reasons for moving out of the country. There are also economic grounds. China has long been seen as unattractive in terms of wages, staff turnover, and ever-increasing tariffs. The cost of final products has increased significantly in recent years. There are fears that there will be no more tech companies left in the country. The government has declared war against local firms engaged in this industry. Meanwhile, foreign companies see no reason to go on with their businesses in the authoritarian country.
