January 17, 2019
As a result of the impact of the US-China trade war, the Japanese company has opted to move its production line out of the country in order to help reduce costs.
As The Epoch Times reports, on 5 January 2019 Ricoh revealed that it would be relocating its printer production facilities from Shanghai and Shenzhen to a factory in Thailand, hoping to “restart production” there within two months.
The reason for the move, given by an anonymous employee, was “cost-effectiveness.”
However, Ricoh is also in the process of building a new factory in Dongguan, not far from Shenzhen.
With this move, the OEM joins the ranks of 400 US-funded companies which have also elected to depart from China due to the trade war. These include the likes of Apple Inc. and Samsung Electronics.
A Chinese economist, Mr. Zeng, explained that “under the environment of economic depression, high land prices, and rising labour costs, foreign investors are bound to withdraw from China sooner or later.”
“It is natural for foreign businessmen to withdraw from China. It can be foreseen because China’s economy is getting worse and the economic situation is in downturn,” Mr. Zeng said.
“The withdrawal of foreign capital is related to China’s economic and political conditions, and even the recent state of Chinese society,” he continued.
“Chinese society is increasingly showing itself to be unwelcoming and intolerant to foreign investment and foreign businesses. This is also a big reason for the withdrawal of a large number of foreign investors amid China’s economic downturn.”
Categories : Around the Industry