Foxconn International Removed From Hang Seng Index

Tasha26 writes "After the suicides and fatal explosion, the Taiwanese company Foxconn now faces losing its blue-chip status. Falling prices for smartphones, laptops, tablets and other gadgets and rising wages in China have undermined Foxconn's financial performance. The company lost $220m (£135m) in 2010. Foxconn International will be removed from Hong Kong's benchmark Hang Seng index and be replaced by insurer AIA and nappy maker Hengan. The two new entrants use China both as a source of cheap labour and as a market for their product, a switch which Foxconn is now considering."

Comments

Re:Great...?

[TheRaven64]

The second is the more important part. Foxconn uses China as a source for cheap labour, but focusses on exporting their products. The fact that this is a failing business model is interesting, since it shows that China needs the west a lot less than you might have thought - companies that make things in China and sell in the USA are failing relative to companies that make things in China and sell them in China.