Beijing Voices Concerns over Hon Hai’s U.S. Investment Plan

 Beijing Voices Concerns over Hon Hai’s U.S. Investment Plan

Source: China Times & United Daily News

January 18, 2017

Beijing has conveyed its concerns to Terry Gou (郭台銘), chairman of Hon Hai Precision Industry Co. (鴻海), after  reports were circulated about its investment expansion plans to the U.S., international media reported yesterday. Gou told high-level officials in Beijing that he would not withdraw investments from the Mainland as a result, adding that he had not made a decision on the U.S. investment plans in the absence of a clearer picture about future government policy in Washington. Gou went on to say that even if he invested in the U.S., Hon Hai still would not cut investment on the Mainland.

More and more international firms expressed interest in expanding investments in the U.S. as Trump pushes to bring manufacturing jobs back to the U.S. In early December, Hon Hai reportedly said it had plans, as part of a joint venture with Japan’s SoftBank Group, to invest US$7 billion, creating 50,000 new jobs in the U.S. over the next four years. At the time, Hon Hai only said that they would evaluate and discuss investment opportunities in the U.S.

According to media reports, Gou has been invited to U.S. President-elect Trump’s inauguration on January 20, but he does not plan on attending.

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