- Sep 18, 2009
Score 2 for big IT companies abandoning ship on China (where intellectual property is as safe as unprotected ---). Dell wants to move out of China (for sure), into India (probably):
SourceThe 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.