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Huizhou city on the north of China's flourishing Pearl River Delta has turned into a ghost town after Samsung closed its three-decade old factory and shifted operations to India and Vietnam in October, in the first visible fallout of the ongoing trade war between China and the US. Samsung relocated production to Vietnam and India in large part as a response to the trade war between the world's two largest economies, it said, adding that the industry insiders consider that it reflected China's changing position in the global supply chain.
Last year Samsung inaugurated its world's largest mobile factory in Noida, near the Indian capital. The new facility will enable Samsung to double its capacity for mobile phones in Noida from 68 million units a year to million units a year, in a phase-wise expansion to be completed by China, regarded as the world's factory, held a virtual monopoly over the global supply chain of manufacturing in the last three decades. US President Donald Trump launched the trade war with China last year demanding Beijing to reduce massive trade deficit.
Trump is also demanding an intrusive verification mechanism to supervise Beijing's promise to protect intellectual property rights IPR technology transfer and more access to American goods to Chinese markets. While the two countries held several rounds of talks to end the trade war, the conflict, however, left trail of devastation for the Chinese manufacturing industry which was badly hit by the economic slowdown and steady fall of exports in the last few years.