by Liu Yangwei, chairman of Foxconn, Apple’s main contract maker, said on the latest earnings call that the company will reduce its reliance on China as a major source of revenue. About 70% of Foxconn’s revenue comes from China, and the proportion from markets outside China will continue to grow in the future. “It’s a basic fact that labor-intensive industries migrate to low-GDP countries,” said Liu Yangwei, who said these economies grew along with labor-intensive industries, which in turn sparked another round of migration. Protests erupted at Foxconn’s Zhengzhou factory late last year as workers grew dissatisfied with strict epidemic prevention and control policies and wages. In view of the resumption of normal production at the Zhengzhou factory, Liu Yangwei said that Foxconn’s smart consumer electronics business is expected to achieve year-on-year growth in the first quarter of this year.
