New Delhi, Dec 5 (LatestNewsX) — Apple’s main manufacturing partner, Foxconn, made an unexpected exit when its Henyang Hongfujin Precision Industry plant shut down on September 30, 2025, a move the report said today highlighted the “hollow core of China’s industrial economy.”
The factory, once home to roughly 30 000 workers and a huge output pipeline, left the surrounding commercial corridors eerily empty, Daily Mirror noted.
Experts blame rising production costs, capricious regulation, and the lingering tension of the U.S.–China trade war for eroding the confidence that foreign firms had in operating there.
“The once-bustling commercial districts now resemble abandoned towns, with shuttered storefronts and displaced workers forced into precarious jobs like food delivery,” the source said.
Faced with Beijing’s tightening grip and unpredictable policies, Apple accelerated its relocation strategy, moving Foxconn’s production capacity to India and Vietnam, where tax incentives and a steadier regulatory climate are already in place.
Foxconn had been a backbone for Zhengzhou, supplying more than 80 % of its export volume and half of Henan province’s total. As it scaled back and shifted operations abroad, Henan’s phone exports plunged by 60 % in Q1 2024, dragging provincial trade down 23 %.
Microsoft’s CSS team has likewise begun moving staff to Japan and Australia, halting plans to rehire in China—an example of a growing trend as multinationals look to alternatives in markets such as India and Vietnam.
The report links the disruption to deep‑root corruption, an unpredictable regulatory environment, and labour exploitation, noting that local officials chase short‑term GDP numbers at the expense of sustainable development.
With Foxconn gone, many workers face “black factories” that thrive under lax enforcement and corruption, the report added. It warned that the Chinese Communist Party’s (CCP) failure to address corruption, enforce fair labour practices, and provide economic stability has left ordinary citizens in distress.
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