Electronics Production | December 18, 2007
25% of Flextronics sales goes to China
Last year, the output value of the Chinese market accounted for one-fourth of its global total but only 10% of it’s spendings went back to China.
Multinationals in China have lower purchasing values than sales. The main reason for this development is that China’s high-tech industry is less developed than other countries. Most companies especially in the EMS business will only buy low-end products or products with less value-added from China. Cost is the key in the EMS business to be able to compete. Manufacturers make higher profit with lower costs. EMS provider Flextronics aims to become the "brand behind brands" and utilize its global-manufacturing advantages to produce products for local original design manufacturing suppliers.