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Could Dell Be Next to Leave China?

booo

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Could Dell Be Next to Leave China?

There's been a lot of discussion about Google's decision to walk out of China and it seems as though other companies could be considering similar moves.

Today a story about the whole Google-China situation appeared on the front of the Hindustan Times (via Engadget). Though the article focused mostly on Google's business in China, a brief mention of another large company following suit has people talking.

The Hindustan Times cites Indian Prime Minister Manmohan Singh as saying Dell is considering moving business from China to somewhere else.

"This morning I met the chairman of Dell Corporation," the Prime Minister said. "He informed me that they are buying equipment and parts worth $25 billion from China. They would like to shift to safer environment with climate conducive to enterprise with security of legal system."

However, there are some companies that are siding with China. The Associated Press reports that TOM Online, a mobile Internet company that operates tom.com, is severing ties with Google because of everything that has happened. The Internet firm said yesterday it was stopping use of Google's search services after "the expiry of agreement."

"TOM reiterated that as a Chinese company, we adhere to rules and regulations in China where we operate our businesses," the company's parent, Hong Kong-based TOM Group, said in a statement Tuesday.

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Dell looking outside of China for 'safer environments,' according to Indian PM -- Engadget

The Hindustan Times cover this morning has a generous space dedicated to Google's exit out of China and related efforts at redirecting mainland users to its Hong Kong hub, but couched cosily inside that story is perhaps an even bigger one. Indian Prime Minister Manmohan Singh is quoted as saying that Dell is considering taking its $25 billion's worth of business elsewhere, possibly India:
"This morning I met the chairman of Dell Corporation. He informed me that they are buying equipment and parts worth $25 billion from China. They would like to shift to safer environment with climate conducive to enterprise with security of legal system."
Michael Dell's outfit already has one manufacturing plant in India, and the man himself has been on a charm offensive in the country this week meeting and greeting local officials. It could well be, however, that Dell is just seeking to play China and India off one another to get itself the most favorable manufacturing deal, but it's still interesting to find such a high profile protestation against the supposedly enterprise-choking climate and uncertain legal system in China. It appears that Google's wrangle with the Middle Kingdom's leadership has forced consumer electronics execs to reevaluate their strong reliance on China, and the (very) long-term effects could indeed be a shifting, or at least diversification, of manufacturing away from Yao's homeland.

:yahoo::yahoo::yahoo:
 
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DailyTech - Updated: Dell Reportedly May Follow Google Out of China, Jumping to India
Update: Mar. 24, 2010 12:15 p.m.
The news that Dell might pull out of China, covered first by the Hindustan Times and Engadget appears inaccurate. We received a comment from Dell's David Frink. Mr. Frink says that there are no immediate plans to pull out of China. He states:
[There is] a misunderstanding of what Mr. Dell and the Prime Minister discussed. In fact, Mr.Dell met with Prime Minister Singh to discuss ways of building India's hardware manufacturing eco-system. In this context, Mr. Dell said that the company spends approximately $25 billion annually on sourcing components from its suppliers in China. With the right kind of progress, Mr. Dell believes that India also has an opportunity of becoming a hardware manufacturing hub, generating employment and adding to the country's impressive growth. Dell HAS NOT made any plans to shift its component spend at this time.
Nonetheless, Dell may be disallowed to sell its new Android handsets in China later this year, which ironically may (in part) be manufactured in China.

next time, I will do some more research....:undecided:
 
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china offers them cheap labour, and cheap prised materials, they are making very good profits????, why will they leave
 
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Oh wow, how did you manage to dig out that thread from 2010? :lol:
 
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