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Dell is reportedly considering ditching China. Dell would likely move to India, where it already has one plant.  (Source: CNET)
The world's third largest computer maker is reportedly looking for a safer environment

Dell currently does about $25B USD in business in China.  It could soon pull the plug on that business and move it to India, according to Indian Prime Minister Manmohan Singh, who spoke with the Hindustan Times.

The Indian newspaper quotes India's PM as stating, "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."

Michael Dell was in India this week, meeting with Indian officials.  Dell already has one plant in India.

Some are speculating that Dell is alarmed by the Chinese government's response to Google -- who uncensored its Chinese search results on Monday.  The Chinese government is accusing Google of espionage and trying to force it out of the country.  Dell enjoys a close relationship with Google and is preparing to launch an Android handset (which will likely be banned from China).

Dell also is likely concerned about the rash of cyberattacks that China has cast a blind eye to.  Some, though, says that Dell is merely trying to play China and India to get the most favorable deal possible in terms of taxes, land, etc.

A decision to move its Chinese business to India would certainly rock the global economy.  With the exit of Dell and Google, others might be tempted to similarly jump ship.  That could have a huge impact on the growing economies of China, and its neighbor India.

Some American firms, though, have stated that they have no intention to leave China.  Microsoft says it opposes Chinese censorship, yet it continues to cooperate with Chinese officials in censoring its search, unwilling to take a strong stand against the policy.  Dell's rival Apple also continues to be very ardent about doing business in China, despite its struggles to sell its pricey products there.

Update: Mar. 24, 2010 12:15 p.m.

The news that Dell might pull out of China, covered first by the Hindustan Times and Engadget appears inaccurate.  We received a comment from David Frink, senior manager of Dell Corporate Affairs.  Mr. Frink says that there are no immediate plans to pull out of China.  He states:

[There is] a misunderstanding of what Mr. Dell and the Prime Minister discussed. In fact, Mr.Dell met with Prime Minister Singh to discuss ways of building India's hardware manufacturing eco-system. In this context, Mr. Dell said that the company spends approximately $25 billion annually on sourcing components from its suppliers in China. With the right kind of progress, Mr. Dell believes that India also has an opportunity of becoming a hardware manufacturing hub, generating employment and adding to the country's impressive growth. Dell HAS NOT made any plans to shift its component spend at this time.

Nonetheless, Dell may be disallowed to sell its new Android handsets in China later this year, which ironically may (in part) be manufactured in China.



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Go Dell
By MrBlastman on 3/24/2010 10:27:42 AM , Rating: 5
The more firms that follow Google and Dell's (supposed) lead, the better. The fortune cookie for China is grim right now:

"You will face hard challenge in face of waning productivity."

Perhaps, they should learn to treat the hand that feeds them better--by treating their citizens better. While they can keep their own citizens under control with things such as secret jails and government thugs, they can not control the rest of the world and the concept known as "freedom." It is much stronger a force than they think.

The free world can see right through what they might be doing... and their agenda. If they keep it up, their fuel might just run out.

I think more American businesses _should_ follow their lead and leave that place. We've put up with more than enough--melmanine in food, propylene glycol, lead in paint (and toys) and shoddy knockoffs. Either they respect our way of doing business or we find other countries to form relationships with.




RE: Go Dell
By siuol11 on 3/24/2010 10:43:34 AM , Rating: 1
Our way of doing business seems to be to destroy the local economy and run sweatshops- so I can't really say I blame them for being hostile (that goes for any 3rd world country).


RE: Go Dell
By MrBlastman on 3/24/2010 10:50:27 AM , Rating: 5
How have we destroyed the Chinese economy? If anything, we have helped make the Chinese economy what it is today by outsourcing our labor and manufacturing to them. These people have jobs, money and wealth that they never would have had before due to their oppressive, communist government. We have done them a favor by doing business with them.


RE: Go Dell
By bhieb on 3/24/2010 10:56:12 AM , Rating: 5
Aww the sweatshops argument. That is only valid if you are healthy and happy here on your high horse. You may call them sweatshops all you'd like, but the reality is that in China they are factories and highly sought after jobs. Just because they don't meet your standard for what a good job is does not mean that there are not droves of Chinese that would love a job at these so called "sweat shops".

You sir have far more options available to you, and if we take these sweatshops away, the Chinese people would be FAR worse off not better as you imply.


RE: Go Dell
By Samus on 3/24/2010 8:30:11 PM , Rating: 2
this "sweatshop" in brooklyn that's air conditioned, comfy environment, pays 6-10/hr cash and allows for smoking breaks and lunch. nobyd is held there against there will; everybody wants to be there making a decent wage. making knockoff ethan allen sofas and chairs.

the only people who should really care at all is ethan allen holdings and the IRS. there are no human rights violations going on there.

as said, most 'sweatshops' are legitimate operations in factories anyway. anybody who believes their converse or nike's are made by underage thai kids suffering inhumane conditions has clearly watched too many episodes of 60-minutes and frontline.


RE: Go Dell
By yomamafor1 on 3/24/2010 11:03:45 AM , Rating: 4
Actually, its the other way around. Some of the Chinese businessmen actually force their workers to work in sweatshop like condition to reduce the cost and increase the profit. International companies actually do offer better working conditions than those Chinese companies. The government is not doing much either, for fear that it may increase the cost of production. Until recently China has not adopted any form of labor law to protect their citizens (especially when Chinese government practices socialism), and even worse is that after the labor law was passed, numerous Chinese companies still refused to comply with the law.

To be honest, international companies gave Chinese a lot of job opportunity and security, and like others have said, the life for the Chinese people would be a lot worse if not for these companies.


RE: Go Dell
By eddieroolz on 3/24/2010 12:46:26 PM , Rating: 5
And yet ironic how those Chinese ultranationalists are quick to bash everything Western even though their country's existance depends on the West.

Just my random $0.02.


RE: Go Dell
By NA1NSXR on 3/25/2010 1:43:48 AM , Rating: 1
They don't depend on the west at all. Instead of us consuming all of their production they could be consuming it themselves instead. If China disappeared tomorrow we would be scrambling for far more goods than most people are aware of, even those with a passing knowledge that a lot of 'stuff' comes from China. If the US disappeared tomorrow the Chinese people would be affected far less. In fact outside the very core of the largest cities people would be hard pressed to notice. I have lived and worked there, and continue to work with Chinese companies. I am also a very harsh China critic, but your comment is just so outrageous that it bodes badly for the future of our country.

They make stuff. That is not something to look down on.


RE: Go Dell
By porkpie on 3/25/2010 2:02:33 AM , Rating: 2
"They don't depend on the west at all."

While I agree with the spirit of your post, I can't let this stand. China's economy is far more dependent on its exports than we are on Chinese imports. Furthermore, even today the US still manufacturers considerably more than does China. Unsurprisingly, American manufacturing is focused on capital-intensive goods, whereas Chinese manufacturing is primarily in labor-intensive goods.


RE: Go Dell
By Iaiken on 3/24/2010 11:11:20 AM , Rating: 2
We don't run the sweat shops, the local Chinese do, business simply turns a blind eye to it and the requisite bribes and so forth as the cost of doing business in China.


RE: Go Dell
By LyricalGenius on 3/24/10, Rating: -1
RE: Go Dell
By BurnItDwn on 3/24/2010 12:01:02 PM , Rating: 2
IMO, We should only trade with countries that have similar labor laws as the US. Would resolve a lot of these types of "issues."


RE: Go Dell
By Motoman on 3/24/2010 12:16:19 PM , Rating: 2
I believe that China does have "similar laws." It's just that they don't really pay attention to them.


RE: Go Dell
By rudy on 3/24/2010 1:36:50 PM , Rating: 2
You really don't know anything, if the conditions were so bad people would not work their. The fact is companies from developed nations provide better paying jobs then were previously possible. They also provide some workers right often where their are absolutely none. The economic growth is what these countries experience not destruction.


RE: Go Dell
By siuol11 on 3/24/10, Rating: -1
RE: Go Dell
By MrBlastman on 3/24/2010 2:22:21 PM , Rating: 2
Most history books these days, at least in public schools, suffer from revisionist history. I think the Japanese started it actually, many years ago pertaining to World War 2. Either way, it is a sad fact we must all accept.


RE: Go Dell
By jimbojimbo on 3/24/2010 2:35:33 PM , Rating: 1
And while he's reading that he should read a spelling book. There and their are different words as are than and then. What the hell is wrong with people? It's so easy.


RE: Go Dell
By Stan11003 on 3/24/10, Rating: 0
RE: Go Dell
By Jeffk464 on 3/24/2010 2:10:58 PM , Rating: 2
Well good for them, I like to see companies with some morality.


RE: Go Dell
By Jeffk464 on 3/24/2010 2:12:34 PM , Rating: 2
P.S. I think I will make sure my next laptop is a dell. Vote with your wallet I say.


RE: Go Dell
By Jalek on 3/24/2010 6:05:20 PM , Rating: 2
Made in China?
No thanks. Chinese electronics tend to catch fire.


RE: Go Dell
By bigboxes on 3/24/2010 6:56:05 PM , Rating: 2
Haha, right. Outsource everything to a country where they can pay the workers a tenth of what they might make in the U.S. When is the last time that you have had the privilege of talking with Dell customer support in India? Thanks Dell...


RE: Go Dell
By Penti on 3/24/2010 5:20:05 PM , Rating: 2
It's Dell who moved the computer electronics manufacturing to China (through Foxconn and other partners) in the first place. Your just playing retards with all these headlines nobody get any more informed by and confuses Joe Public.

Dell are vertically integrated with their contract manufacturers and the Taiwanese won't move out of China. PRC has made Foxconn one of the worlds largest companies with just 270 000 employees in Shenzhen. Taiwan's relations even improve on the diplomatic level. Dell don't manufacturer anything themselves, it's just final assembly plants where they configure machines this is about any way, if you talk about Dell owned plants. Their suppliers won't move they made billions of dollars in investment in China, it's there some of the most modern plants are and the manufacturing capacity will be ruined without them. The working conditions in the "Democracy" India's hardware industry is probably a lot worse then in China too. Freaking US accepted China in 73, the world in 71. Get over it, China has never really been the big bad wolf.


Just BOYCOTT China, it's that simple
By T2k on 3/24/2010 12:25:53 PM , Rating: 2
Seriously: why bother...? Even if we forget Taiwan, Korea etc for not being "cheap enough" then India is right next to it and while it's also far from being a democratic paradise* it's a cheap place with a large population pool which typically speaks English as well.

*any Indian thinking about protesting: STFU unless you start with the military-police state of Manipur and its daily extrajudicial killings or your completely fuckin' crazy Hindu fundamentalists running amok in every other state without any repercussions etc. No, you are not a real democracy.




RE: Just BOYCOTT China, it's that simple
By Uncle on 3/24/2010 12:54:03 PM , Rating: 2
If all computer parts are built in China or the companies I buy from import only from China, and their is no other source, where do you suggest I buy from.


By T2k on 3/24/2010 3:26:51 PM , Rating: 2
I meant let's move all factories and plants to India, that's what I am suggesting... China, inherently by its sole advantage (cheap labor) offers NOTHING that India cannot but you have to deal with a Communist dictatorship, a super-barbaric regime.


By Jalek on 3/24/2010 6:07:54 PM , Rating: 2
Taiwan. I don't even want to know what you sell if it's all Chinese.


RE: Just BOYCOTT China, it's that simple
By hashish2020 on 3/24/2010 5:03:53 PM , Rating: 1
Wait, America doesn't have extrajudicial killings? You must be a white male, because you really don't know much about real life in America.

America didn't have non-democratic governments during Reconstruction? Don't we say America has had democracy for over 300 years?

Hm, we sure didn't have racially or religiously crazy people running across out country, I mean the KKK never lynched people, everyone could vote throughout all of history, we didn't have government sanctioned slavery...

I mean, we have had a great history of ~45 years of democracy, right?


RE: Just BOYCOTT China, it's that simple
By T2k on 3/24/2010 5:43:50 PM , Rating: 1
[quote]
Wait, America doesn't have extrajudicial killings? You must be a white male, because you really don't know much about real life in America.[/quote]

Are you high or you just completely fucking ignorant about the subject I am talking about?

No we DO NOT HAVE STATE-RUN POLICE AND MILITARY KILLING SQUADS INSIDE AMERICA, WORKING IN TANDEM, with complete impunity and legal authorization.

[quote]America didn't have non-democratic governments during Reconstruction? Don't we say America has had democracy for over 300 years?[/quote]

Again: what the fuck are you talking about? I am talking about NOW, TODAY. The US, EU and even some Asian-Pacific countries are democratic regimes (FYI corruption is system-agnostic thus irrelevant) , INdia clearly IS NOT. To give you some perspective: neither Israel is or any Arab country is.

[quote]Hm, we sure didn't have racially or religiously crazy people running across out country, I mean the KKK never lynched people, everyone could vote throughout all of history, we didn't have government sanctioned slavery...

I mean, we have had a great history of ~45 years of democracy, right? [/quote]

Seriously, you are one dumb fuck - where the fuck do you see religious wackos running around and killing Americans with impunity TODAY?
Because that's whta's happening in some areas of India, by fuckin batshit-crazy Hindu morons beating and killing teens for even talking to Muslims or other dirty 'casts'... again, TODAY.

How about shutting your mouth and reading about the subject first?
Start here, it's from late February: http://www.economist.com/world/asia/displaystory.c...

This is from today: http://in.news.yahoo.com/43/20100323/860/ttc-dhaka...

ANd just googl'd up this one from 2003: http://www.hrdc.net/sahrdc/hrfeatures/HRF71.htm


By leuNam on 4/20/2010 5:32:06 PM , Rating: 2
You can't judge the people and it's culture, even the Japs hide a lot from the past. If you are just here to insult, stfu....


By porkpie on 3/24/2010 7:08:32 PM , Rating: 3
"...everyone could vote throughout all of history."

There isn't a nation in the world, today or ever before, that has let "everyone" vote. There's also zero evidence that a fully unrestricted franchise is a good thing.

And, based on your comments, allowing you the privilege is not exactly a wise move anyway.


Bindi
By nafhan on 3/24/2010 10:33:55 AM , Rating: 2
In the pic for the article, it looks like Michael Dell has a Bindi (red dot). I know it's probably an unfortunate shadow, but it made me laugh.
On topic, I'd be very happy to see more companies move from China to India. The Indian IT people I know (both in the US and overseas) are awesome.




RE: Bindi
By LyricalGenius on 3/24/2010 11:15:28 AM , Rating: 2
Well....He IS wearing a "bindi"... it's actually a sign of respect that when someone lands in India (or goes to some sort of ceremony there) to place it on their forehead (it can be wiped off later on...but people don't usually do that) when they enter...so it's not "unfortunate" at all...:)

Peace


RE: Bindi
By achintya on 3/24/2010 11:38:23 AM , Rating: 4
What Dell is wearing is called a "Teeka" in India. It is a powder like substance mixed with water to make it a paste. Teeka is applied to the forehead of someone as an honorary thing. We regularly apply Teeka to the idols of our Gods and the priests who worship them.


RE: Bindi
By porkpie on 3/24/2010 3:14:45 PM , Rating: 2
Isn't that a 'tilaka' ?


RE: Bindi
By achintya on 3/24/2010 4:06:01 PM , Rating: 2
Well, they're almost the same thing.


RE: Bindi
By nafhan on 3/24/2010 4:14:40 PM , Rating: 2
Thanks, sorry... and that's it for my culturally insensitive comments of the day. :)


Sigh
By icanhascpu on 3/24/2010 10:20:38 AM , Rating: 2
quote:
Apple continues to be very ardent about doing busy in China, despite its struggles to sell its pricey products there.


Couldn't help it could you.




RE: Sigh
By crystal clear on 3/24/2010 10:41:56 AM , Rating: 2
......despite its struggles to sell its pricey products there.

Yes how can they sell in the land of the pioneers of original fakes.

Yes every company of repute will ultimately agree to this-

They would like to shift to safer environment with climate conducive to enterprise with security of a legal system."


RE: Sigh
By crystal clear on 3/24/2010 12:27:53 PM , Rating: 2
There's a thriving market for 'cloned' or 'knock-off' phones and computers in China, where manufacturers are already looking to produce imitations of Apple's iPad

http://www.telegraph.co.uk/technology/apple/741449...


RE: Sigh
By eddieroolz on 3/24/2010 12:54:19 PM , Rating: 5
Frankly, I thought Apple and China would get along, considering their management styles.


RE: Sigh
By inperfectdarkness on 3/24/2010 1:21:35 PM , Rating: 2
hey, it works. evil loves evil. :)


Whoa
By Smilin on 3/24/2010 11:01:31 AM , Rating: 4
quote:
Microsoft recently came out in support of Chinese censorship


WTF man?

Not pulling your business out of China is not the same as coming out in support of censorship.

You've bent the everliving sh1t out of the truth. Shame on you.




RE: Whoa
By porkpie on 3/24/2010 2:11:46 PM , Rating: 2
Come on DT editors, respond to this. How you can allow outright lies to be posted to your site?


RE: Whoa
By Jalek on 3/24/2010 6:15:40 PM , Rating: 2
They did say that they wouldn't stop censoring even if Google did. They also only had 5% of the market.

I think they'd sacrifice most intangibles for a couple of billion Bing users.


RE: Whoa
By Smilin on 3/25/2010 9:58:01 AM , Rating: 2
I'm sorry but how does following the law prove that you are in favor of it?

It looks like Jason has corrected the article though. I tip my hat sir.


we all need to pull our money out of china
By shin0bi272 on 3/24/2010 10:55:01 AM , Rating: 2
Look I love chinese food as much as the next guy. Wu Shu is a great Martial art and so is Shaolin Kempo but we are talking about businesses and jobs here.

LBJ started the great society which started us on this path of de-industrialization. That means we arent going to build anything anymore and ship those manufacturing jobs all over the world and we would just export democracy. All those jobs have gone to china and Americans are out of work because of it.

Now we know china is manipulating its currency to give itself a huge price advantage in its exports. It then uses that extra American money to buy ... American Bonds! So not only do they have our jobs, sell us all the crap we should be making here, and have great food. They also have us over a barrel with our debt.

If we dont start buying those bonds back (meaning we have to stop spending on a federal level) and start american factories back up we will lose this economic war with china and the debt bomb will explode and make the housing crisis look like a picnic in the park.




RE: we all need to pull our money out of china
By Mr Perfect on 3/24/2010 12:12:24 PM , Rating: 2
I agree that the amount of American debt the Chinese own is alarming, but they can keep their jobs. Americans won't work factory jobs making cheap crap for pennies a day. That's why the jobs moved over there in the first place.


By ZachDontScare on 3/24/2010 2:01:54 PM , Rating: 4
quote:
I agree that the amount of American debt the Chinese own is alarming,


How did 'the Donald' put it? If you owe the bank $100,000 and cant pay it back, you're in trouble. If you owe the bank $100 million and cant pay it back... the bank is in trouble'.


Jason, you should be whipped like a dog for this
By porkpie on 3/24/2010 12:58:50 PM , Rating: 1
quote:
Microsoft recently came out in support of Chinese censorship
They did no such thing, and frankly I'm shocked your editors even allowed you to post such a blatant distortion.

Do none of you care at all about this site's credibility?




By crystal clear on 3/24/2010 1:16:50 PM , Rating: 3
Microsoft's official statement-

"We have done business in China for more than 20 years and we intend to continue our business there," a Microsoft spokesperson said in an e-mail statement.

" We also regularly communicate with governments, including the Chinese, to advocate for free expression, transparency, and the rule of law. We will continue to do so ."


By Smilin on 3/24/2010 3:21:39 PM , Rating: 2
+1

You should edit this thing Jason. That's not just a distortion it's an outright lie.


By rudy on 3/24/2010 9:32:16 PM , Rating: 2
LOL they never had any credibility to begin with.


Hey Jason
By cybrgps on 3/24/2010 11:08:15 AM , Rating: 2
Thanks, I liked reading your updates on G. vs China, & Microsoft in China, etc.

But,..hmm. Dailytech..quite a log-in challenge for me right now..lol. keyboard issues..

secret society..





China a currency manipulator
By crystal clear on 3/24/2010 11:53:40 AM , Rating: 2
The Chinese new year -The year of the Tiger is a year of instability and conflict.

So expect more of instability & conflict !

The yuan exchange rate issue -

Undervaluing or depreciating a currency certainly is a form of trade protectionism.

Similar to subsidies offered to chinese manufacturers.




By crystal clear on 3/24/2010 1:30:06 PM , Rating: 2
quote:
Nonetheless, Dell may be disallowed to sell its new Android handsets in China later this year,


Read this -

The most recent example came earlier this month when Motorola (NYSE:MOT) and Microsoft inked a deal to include Bing services on Motorola Android devices in China.
The deal, which includes a pre-loaded Bing bookmark in the mobile browser and an enhanced search widget with Bing integration, gives Motorola a way to bring Android devices to China without getting involved in the Google-China spat.




Anyone else curious...
By BillyAZ1983 on 3/24/2010 3:15:46 PM , Rating: 2
why Dell, an American based Corporation, hasn't just moved all of that business back here stateside? Seems like our 500+ members of government could take the force they used to pass this health care bill and stimulus act and bring that $25B a year back here to the states.

quote:
...With the right kind of progress, Mr. Dell believes that India also has an opportunity of becoming a hardware manufacturing hub, generating employment and adding to the country's impressive growth. Dell HAS NOT made any plans to shift its component spend at this time.....


I've heard the United States of America has had some pretty impressive growth over the years too.




Talk is cheap
By whenwhere on 3/24/2010 7:39:00 PM , Rating: 2
Talk is cheap - esp. a piece of junk news from an Indian newspaper source. I bet you Dell won't even try unless they want to drop out of top 5 PC vendors.




Here we go
By ajfink on 3/25/2010 6:15:40 AM , Rating: 2
Let the exodus begin. Google, Go Daddy, potentially Dell...makes you wonder who will go next.




By securecyber on 3/25/2010 9:43:01 PM , Rating: 2
I have covered many issues about China (politics and IT Security issue) in my extended article.
http://securecyber.blogspot.com/2010/02/should-we-...
Take 20-30 min to read it and you'll understand the implications of recent events with Google better.
I would applaud Dell if India will become Dell's supplier. Perhaps, U.S. won't depend almost 100% on Chinese products.




a safer environment
By mattclary on 3/24/2010 11:25:42 AM , Rating: 1
quote:
The world's third largest computer maker is reportedly looking for a safer environment


Yes, because Texas is rife with... Oh.. Wait a minute...




"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation














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