- At stake for the governments of low- and middle-income countries eager to help is the chance to turbocharge economic development and create millions of new jobs. Countries including India, Mexico, Vietnam, Cambodia and the Philippines are competing on subsidies, tax breaks and other perks to convince businesses that their country is the next best thing to the well-oiled manufacturing machine that China has honed over decades.
- Apple Inc. has shifted some smartphone production to India and is considering Vietnam, where Nike Inc. and Adidas AG already make sneakers, as a destination to make watches and earphones. Toy maker Mattel Inc., the maker of Barbie dolls, expanded its plant in Monterrey, Mexico, into its largest manufacturing facility worldwide between 2020 and 2022. Chinese electronics and appliance manufacturer Hisense Co. is developing an industrial park in the same city to make refrigerators, washing machines, air conditioners and kitchen appliances for the U.S. market.
- India has focused on low corporate tax rates and government subsidies to lure overseas businesses. In 2021, India announced close to $1 billion in incentives to persuade companies to make more computers and tablets in the country, an effort to repeat its success in fostering smartphone production, which had brought in billions of dollars of investment from companies including Samsung Electronics Co. and Foxconn Technology Group.New Delhi is also eyeing semiconductor manufacturing.
Source: Countries Compete to Lure Manufacturers From China (WSJ) $
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