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  3. Want to Understand the Inner Workings of China's iPhone City? Start Here

Want to Understand the Inner Workings of China's iPhone City? Start Here

Want to Understand the Inner Workings of China's iPhone City? Start Here
Want to Understand the Inner Workings of China's iPhone City? Start Here, Apple Store in Shanghai, China © Flickr user wza. Licensed under CC BY-NC-ND 2.0
Apple Store in Shanghai, China © Flickr user wza. Licensed under CC BY-NC-ND 2.0

The New York Times has published an in-depth article entitled ‘How China Built iPhone City With Billions in Perks for Apple’s Partners’, revealing a treasure chest of public benefits for the world’s biggest iPhone factory in Zhengzhou, China. In a city of six million inhabitants in an impoverished region of China, the local government has contributed $1.5 billion to Foxconn, Apple’s supplier of iPhones. The money is used, in part, to improve local infrastructure, reduce Foxconn's export costs, and build housing for the factory’s 350,000-strong workforce (five times the number of people employed directly by Apple in the United States).

Apple Store in Shanghai, China © Flickr user wza. Licensed under CC BY-NC-ND 2.0 Zhengzhou Convention Centre © Flickr user josechugijon. Licensed under CC BY-NC-ND 2.0 Foxconn manufactures the iPhone © Flickr user prachatai. Licensed under CC BY-NC-ND 2.0 iPhone City, Zhengzhou at night © Flickr user damien_thorne. Licensed under CC BY-NC-ND 2.0 + 5

iPhone City, Zhengzhou at night © Flickr user damien_thorne. Licensed under CC BY-NC-ND 2.0
iPhone City, Zhengzhou at night © Flickr user damien_thorne. Licensed under CC BY-NC-ND 2.0

In order to reap the economic benefits of hosting multinational companies such as Foxconn, the Zhengzhou authorities have offered the company a broad portfolio of benefits. These include a $600 million contribution towards the construction of Foxconn’s manufacturing complex, 5% discounts on energy costs, and a relaxation of corporate tax rates.

Foxconn manufactures the iPhone © Flickr user prachatai. Licensed under CC BY-NC-ND 2.0
Foxconn manufactures the iPhone © Flickr user prachatai. Licensed under CC BY-NC-ND 2.0

However, the revelations come at a time of uncertainty over the future of globalization. With the rise of economic nationalism in both China and the United States, emboldened by President Trump’s denouncement of Apple’s global business model, the willingness for countries to use public money to court private companies may soon disappear.

Zhengzhou Convention Centre © Flickr user josechugijon. Licensed under CC BY-NC-ND 2.0
Zhengzhou Convention Centre © Flickr user josechugijon. Licensed under CC BY-NC-ND 2.0

Learn more about the iPhone City and the effect of multinational companies on the urban environment in the full article here.

Downtown Zhengzhou, China © Flickr user kenner116. Licensed under CC BY-NC-ND 2.0
Downtown Zhengzhou, China © Flickr user kenner116. Licensed under CC BY-NC-ND 2.0

News via: The New York Times

Cite: Niall Patrick Walsh. "Want to Understand the Inner Workings of China's iPhone City? Start Here" 26 Jan 2017. ArchDaily. Accessed . <https://www.archdaily.com/803865/want-to-understand-the-inner-workings-of-chinas-iphone-city-start-here/> ISSN 0719-8884
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