Subsidizing companies that manufacture goods for Western multinationals has been a crucial component of China’s economic policy. A major beneficiary of this policy has been Apple and its manufacturer Foxconn, which operates a large iPhone production facility in Zhengzhou, China. The New York Times correspondent David Barboza has obtained confidential government records and conducted more than 100 interviews to conclude that billions of dollars’ worth of subsidies are behind “iPhone City,” Foxconn’s highly profitable manufacturing site in Zhengzhou. getAbstract recommends Barboza’s investigative report to business leaders with a stake in the Chinese market.
In this summary, you will learn
- How the city of Zhengzhou is subsidizing the production of Apple iPhones,
- In what way China has become less welcoming to manufacturing companies serving foreign multinationals, and
- How Beijing’s economic priorities have started to diverge from those of Chinese local governments.
About the Author
The New York Times correspondent David Barboza has written extensively about US firms doing business in China.