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Terry Gou Part 2: The Paradox

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Americans love a wonderful capitalistic story but, in many instances, remain unsettled about the prospect of the Terry Gou dream expanding into small-city Americana. It is difficult to mitigate between two wholly different socioeconomic systems teaming up to author a story nestled in the sternum of the American Dream: How can a billionaire act like a capitalist while enjoying an undue advantage of extremely low labor costs in communist China?

The Foxconn private jet carrying its CEO is the only one allowed to fly over across the Taiwan Straits to mainland China- the communist leaders strictly prohibit anyone else from doing the same.

In spite of the happy marriage between the Chinese Political regime and Mr. Gou, there may be a bit of trouble in paradise. In what could certainly be described as an “irony on steroids”, Chinese Premier Wen Jiabao has scolded Foxconn and insisted on improvement of working conditions at the plant in the mainland. Jiabao suggested that the management treat the poor migrant workers at the factory like they would treat their own grandchildren.

After a string of ten suicides at the Longhua facility, worker wages were doubled, nets were installed to catch any workers attempting suicide, counselors were made available to personnel, and Gou opened the doors of the plant for strict tours.

However, in another active element of the Gou paradox, Foxconn opened a massive facility in Hanoi, Vietnam to safeguard against any pejorative outcome in mainland China.

 

Read the other parts of the “Terry Gou” series here!

Part 1        Part 3         Part 4         Part 5

Is Foxconn ceo terry gou really all he's cracked up to be?