Chinese mega-manufacturers set up factories in India

Foxconn is opening a $5b facility in Maharashtra; Huawei just got a green-light for a networking gear factory; Xiaomi already runs a phone assembly plant in Andhra Pradesh. There are enormous economic, political and military resentments between China and India — the world’s 2 most populous nations. India accuses China of secretly financing the Naxol “Maoist” guerrillas and the 2 countries have long-simmering border-disputes. More interesting is what this says about relative wages, labor availability and demographics in China and India. China’s manufacturing center have thrived on a seemingly bottomless pool of cheap workers, mostly women from the provinces, who travelled to the Pearl River Delta to work in the factories that supply the world with its manufactured goods.

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