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Foxconn's move impacts local business

07-22-2010 13:45 BJT

Foxconn's Shenzhen Longhua factory is currently the company's largest manufacturing base on the Chinese mainland. The technology giant has substantially developed this part of Shenzhen. Its relocation may have a negative impact on nearby businesses.

Some small stores near Foxconn's factory say their business began to wane from about a month ago.

One owner of a print shop said "As the company stopped recruiting employees, fewer customers come here to copy documents."

One owner of restaurant said "Previously so many customers came for lunch, the number has shrunk a lot. The profit is just enough to cover the rent."

Foxconn's facilities' suppliers have also been impacted by its relocation. They have to either follow Foxconn in the move, or add on the extra cost of logistics. Local authorities say the negative impact is limited compared to the benefits of the move.

Wang Shouren, Deputy Director of Shenzhen Venture Capital Association said "The industrial restructuring for an area or a country will cause a negative impact temporarily, but if we don't improve, the long-term harm will be larger."

The local government says the Foxconn relocation means the plants could be used for high-tech industrial development. The area's economy will also be upgraded.

Editor:Xiong Qu |Source: CNTV.CN

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