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Why Apple can’t move production of the iPhone from China to USA

Contrary to the statements of U.S. President Donald trump Apple and suppliers will not be able to move production of the iPhone and create new jobs in the United States. This student at new York University Dezzani (Ken) Zeng said in an interview with CNBC.

In 2016 Zeng for six months worked at the factory, Pegatron in Shanghai. He later described the difficult working conditions at the enterprise, in particular in October 2016 in an interview with the Carnegie Council for ethics in international Affairs, and in April 2017 in an interview, which leads Vestifinance.

In a new interview a student at new York University, received the personal experience of Assembly the iPhone in China, noted that Apple will not be able to return manufacturing of smartphones from China and other Asian countries in the United States: Americans simply will not agree to the same working conditions and low wages.

In addition, he also noted that companies seek to reduce their costs, shifting production from China to countries with even lower wages and other costs.

President Donald trump has stated that he wants to achieve from Apple and manufacturers of components of the translation production in the United States with a view to their production at the American plants. What do you think about this idea? Would the Americans on similar working conditions? What must change in order for such a transfer of production would have been possible?

“In my opinion, first, wages are unacceptable to us employees. 3 I was paid 100 yuan, or $450, per month. I don’t think the Americans will agree to such a salary, given the conditions of accommodation and prices in the United States.

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Even if Apple will outsource production to USA, most likely, they will replace people with robots. I would note that on the Assembly line where I worked, some of the work already performed by robots. For example, the camera on the back panel and battery in smartphones has already been installed by robots.

Many enterprises in China manual labor because it is cheaper than using robots. When you shift manufacturing to the USA can also be some difficulties with the trade unions. China has no trade unions. In the United States is quite strong organizations that can complicate the situation at the enterprises for guidance.

In China, such companies very high turnover of staff. Many take only two weeks or a month. For ordinary workers in China is quite difficult to think in terms of: “No, I don’t like it, we need to gather and protest.”

I’d also note that China’s economy continues to develop. The prices of food and housing are increasing, along with higher wages. In other countries, such as Bangladesh, wages are still very low. Many companies close plants in China and transfer production to countries with lower cost labor. Earlier businesses were located in the United States, and then they were transferred to China, now they are transferred to countries such as Vietnam and Bangladesh.”

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