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Could Dell Be Next to Leave China?

By - Source: Tom's Hardware US | B 68 comments

There's been a lot of discussion about Google's decision to walk out of China and it seems as though other companies could be considering similar moves.

Today a story about the whole Google-China situation appeared on the front of the Hindustan Times (via Engadget). Though the article focused mostly on Google's business in China, a brief mention of another large company following suit has people talking.

The Hindustan Times cites Indian Prime Minister Manmohan Singh as saying Dell is considering moving business from China to somewhere else.

"This morning I met the chairman of Dell Corporation," the Prime Minister said. "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."

However, there are some companies that are siding with China. The Associated Press reports that TOM Online, a mobile Internet company that operates tom.com, is severing ties with Google because of everything that has happened. The Internet firm said yesterday it was stopping use of Google's search services after "the expiry of agreement."

"TOM reiterated that as a Chinese company, we adhere to rules and regulations in China where we operate our businesses," the company's parent, Hong Kong-based TOM Group, said in a statement Tuesday.

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  • 23 Hide
    kelemvor4 , March 24, 2010 2:19 PM
    Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.
  • 22 Hide
    brendano257 , March 24, 2010 2:39 PM
    It's sad to see any company or person siding with China at the moment. I'm behind Google almost 100%, they backed out of an awful environment, most likely loosing money at the time as well. Someone needs to put China in check for their human rights violations and entire regime-like mindset.
  • 19 Hide
    tayb , March 24, 2010 2:40 PM
    kelemvor4Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.


    Maybe if people in the USA didn't think they were worth so much more than they are Dell could bring their manufacturing facilities back here and operate them. Too bad that's a pipe dream because workers here would expect to be paid $15+ an hour doing unskilled work in a factory and then they would unionize and drive up costs even further by demanding outrageous benefits for doing their unskilled labor. If Dell leaves they will be heading to India.

    I would rather have inexpensive Dell products than ones that had "Made in the USA" stitched on the back in tiny letters.
Other Comments
  • 23 Hide
    kelemvor4 , March 24, 2010 2:19 PM
    Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.
  • 10 Hide
    Abrahm , March 24, 2010 2:30 PM
    kelemvor4Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.

    They're considering moving to India.
  • 6 Hide
    hennnry , March 24, 2010 2:35 PM
    It would be great to buy computers made in usa again... except that now, what costs 800 will cost 2000. I know I don't have that kind of money, do you?
  • 22 Hide
    brendano257 , March 24, 2010 2:39 PM
    It's sad to see any company or person siding with China at the moment. I'm behind Google almost 100%, they backed out of an awful environment, most likely loosing money at the time as well. Someone needs to put China in check for their human rights violations and entire regime-like mindset.
  • 18 Hide
    HavoCnMe , March 24, 2010 2:39 PM
    No, bring them home like kelemvor4 said. We NEED the JOBS.
  • 19 Hide
    tayb , March 24, 2010 2:40 PM
    kelemvor4Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.


    Maybe if people in the USA didn't think they were worth so much more than they are Dell could bring their manufacturing facilities back here and operate them. Too bad that's a pipe dream because workers here would expect to be paid $15+ an hour doing unskilled work in a factory and then they would unionize and drive up costs even further by demanding outrageous benefits for doing their unskilled labor. If Dell leaves they will be heading to India.

    I would rather have inexpensive Dell products than ones that had "Made in the USA" stitched on the back in tiny letters.
  • 15 Hide
    xeensd , March 24, 2010 2:42 PM
    Dell could not afford to bring those jobs back to the US.
  • 11 Hide
    Trueno07 , March 24, 2010 2:45 PM
    Bring them jobs back to 'merica!!

    Sadly, xeensd is right...
  • 9 Hide
    tommysch , March 24, 2010 2:45 PM
    We should lower our living standards and run the developing world to bankruptcy.

    Screw them, I want my imperialism back ASAP.
  • 15 Hide
    andrewcutter , March 24, 2010 2:47 PM
    i think it has to do with cost of living since us is a developed country. Ppl need more income to live. Whereas here in india, the cost of living is comparitvly less. The places were factories are setup, it is even less than the cities. So the employees will be happy with less than what is needed in us. As far as unions are considered we have them here also. In fact i think it is there everywhere. Just like we have human rights, workers too need to be protected from exploitation. so legally i tihnk we need a union. the problem is in real world terms either the company has a huge hold that unions becomes voiceless leading to sweat shops or unions become too strong leading to stagnation.... like everything a healthy comprimise between the too is required.
  • 0 Hide
    Anonymous , March 24, 2010 2:51 PM
    Dell doesn't want to be socialized like GM, that's the reason why...
  • 7 Hide
    rhino13 , March 24, 2010 2:53 PM
    Woah, tom.com severed ties with Google O.O

    Thats like getting a finger cut off... or maybe just a hangnail. Probably the latter.
  • 1 Hide
    keither5150 , March 24, 2010 2:58 PM
    What good would bringing $2/hour jobs back to America? China and third world country manufacturers have made us conditioned to low prices. The jobs that have left North America and are not coming back.
  • 11 Hide
    eyemaster , March 24, 2010 2:59 PM
    They Tuk Our' Jbs!!! (South park style, for those who know) :D 
  • 2 Hide
    icemunk , March 24, 2010 3:02 PM
    Protectionism begins. Wars usually follow
  • 2 Hide
    aford10 , March 24, 2010 3:03 PM
    They could afford to produce them here in the USA again, if the factory workers didn't demand $20 an hour. The ever demand for higher and higher wages is part of what is driving businesses to other countries.

    A word of wisdom to those unemployed: If a company like Dell did come back to the US(though unlikely) to produce computers, accept a reasonable wage. All it does is drive up the cost of products, and drive the company to another country.
  • 5 Hide
    scook9 , March 24, 2010 3:03 PM
    I would work for Dell USA if they came back here. Surely they need elelctrical engineers right?
  • 5 Hide
    frozenlead , March 24, 2010 3:05 PM
    keither5150What good would bringing $2/hour jobs back to America? China and third world country manufacturers have made us conditioned to low prices. The jobs that have left North America and are not coming back.


    They will, eventually. The other countries that don't have the expensive benefit programs the US does will eventually get them as their standard of living increases - then the US, which will have already reformed it's policies in the future (I hope, at least) will be a more viable economic option for manufacturing.
  • 1 Hide
    Anonymous , March 24, 2010 3:07 PM
    the 'made in' phrase is not what it used to be, in reality it should read 'assembled in' in this day and age of outsourcing to be competitive many companies rarely ever make their own goods, they assemble them, dell do not make chips or motherboards, heck i be even surprised if they make their own computer cases, they outsource the stuff and then plonk their badges on them, having dell come back to the US wont really create as much jobs as it sounds
  • -8 Hide
    goingoffroading , March 24, 2010 3:09 PM
    Looks like I will never be buying a Tom Tom lol
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