Distrusted due to its close ties with China, Foxconn has to tread carefully and bridge its American business ties with its Communist friends.
Less than two weeks after Terry Gou, the CEO of the world’s largest contract electronic manufacturer went to the White House to discuss boosting its investment plans in the U.S., Chinese Premier Li Keqiang told Foxconn that China is the best place for expanding its investments and manufacturing activity.
“We will continue to expand our development, and optimize the business environment. China has a huge market and lots of talent, it is the best investment place for expanding manufacturing,” Li Keqiang was summarized as saying on the State Council’s official website, which carried pictures of Li’s visit on Tuesday to Foxconn’s sprawling manufacturing facility in Zhengzhou, Henan province.
The pictures on China’s State Council’s official website shows Li being escorted by Gou around Foxconn’s facilities along with a statement saying, Li encouraged Gou to further invest in China with Foxconn’s high-end R&D as well as in supply chain production in China.
Despite the posturing of rapprochement between Chinese President Xi Jinping and U.S. President Donald Trump over North Korean issues, China remains to be a significant threat in the Trump Administration’s “America first” agenda.
Foxconn, also known as Hon Hai Precision Industry Co is a major supplier to Apple’s flagship smartphone and China is the base where Foxconn employs nearly a million people to assemble the iconic iPhone.
In reference to Li Keqiang’s visit to Foxconn’s manufacturing facilities, analysts say, Gou is treading a fine line in balancing the company’s business empire that straddles the United States and China.
In late April, when Gou had visited the White House with senior executives having emerged from the meetings he had said, Foxconn was planning “capital-intensive” investments in America and that details may follow soon.
“After we select the location, the White House will make an announcement,” Gou had said.
Significantly, Foxconn is also a contending suitor for Toshiba Corp’s chip business.
Sources familiar with the deal at hand however say, Foxconn is considered a U.S. security risk since it has close ties with China.