First Google and now Dell? According to the Indian Prime Minister, Manmohan Singh, Dell is to take its $25 billion business out of China citing “safer-environments” and possibly to India. “This morning I met the chairman of Dell Corporation. He informed me that they are buying equipment and parts worth $25 billion from China. They would like to shift to safer environment with climate conducive to enterprise with security of legal system.”
Dell already has one manufacturing plant in India and its chairman, Michael Dell has been in India in the past two weeks meeting different officials on his high profile visit. He was also quoted saying “India is growing faster than China for us” which is surely good news for the Indian counterparts, but what does this mean for China. Has the Google fall out started to show cracks in the Industry’s foundations that is so well established in China?
Industry experts say that Google’s move could have caused a chain reaction where companies now look at China as a unstable and an unreliable partner for business and with other countries such as India catching up fast, they have more options to move their business around. Dell however expects to play both India and China side-by-side in order to get a better deal for setting up shop. India is known to give away free land and tax breaks in order to attract such big multinational coorporations and this might just be what Dell is interested in.
As for China, this could be the first signs of the possible long term effect the industry might have on it.