Indian Prime Minister Manmohan Singh told the Hindustan Times this week that Dell may be getting ready to pull out of China, taking their $25 billion business with them.
“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.”
India would be a good guess as to where the company would move, they already have one plant in the country and Dell CEO Michael Dell has been traveling around that country meeting with local officials.
The move is being seen as a possible way for Dell to play off China and India to gain the most favorable manufacturing deal, however given the awful legal system in China and less than satisfactory working conditions, it could be seen as a good PR move.
Dell isn’t the first company to shift or consider shifting their manufacturing away from China, a country that has become increasingly hard to do business with due to governmental regulation and interference, the once powerful manufacturing hub of the world has seen many of their manufacturing plants close down or cut staff drastically in the last several years.