Dell Moving China Operations To India, Following The Google Bandwagon
In a severe jolt to China, Dell has announced that it will be moving almost $25 billion of operations from China to India, following Google and GoDaddy, who recently quit China this week.
According to reports from Indian newspaper Hindustan Times, the Chairman of Dell, Michael Dell has assured Indian Prime Minister, Manmohan Singh that Dell will be moving its $25 billion operation out of China to India.
Dell reportedly told the India Prime Minister that they were looking for a safer environment with [a] climate conducive to enterprise. However, Dell will not be a new entrant into India as they already have an office there and moving there would just bring more business India’s way.
This is definitely bad for China since this is the third big company to have already walked out or are planning a walk out of an industry which is notorious for its sanctions and censoring.
I would definitely not be surprised if several more companies start to walk out of China after having enough of the monopolistic nature of the government. The coming weeks will be pretty crucial on how things pan out. However, all we can do is keep an eye to see how many companies have the itch to start packing their bags and moving onto more liberal shores.
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Get out of China. China will no longer be a low-cost manufacturing base for greedy Americans. This is good news for Chinese computer makers, for the domestic market will be served by domestic companies. Dell and the like can make the gadgets where they please, and sell to the Indians and Americans. Who cares!
Lack of international competition not good for domestic Chinese market.
Well, China relies hugely on its manpower which is used for this job. If companies start pulling out like this, China is at the receiving end.
Dell forsaking it's considerable China business to walk out of China? You are having a wet dream!
What Crap? There's no assurance from Michael Dell. Moving $25 billion of operations is not as easy as you make it to be!
China economy will collapse if all the big guys pull the plug.
I don't bealieve that this is really going to happen.
and XY – why so much anger ? :O