Samsung ends with smartphone production in China


Tech giant Samsung announced it is ending its smartphone production in China, after facing intensifying competition from domestic rivals such as Xiaomi and Huawei in the biggest smartphone market in the world.

In a Wednesday statement, the South Korean giant pointed out that it had taken this decision in an effort to boost efficiency. It also said that it would however continue sales in the Chinese market.

“The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs,” Samsung, which is the top smartphone maker in the world, said in the statement.

On Twitter, tech expert Zoe Kleinman said that another major reason why Samsung is deciding to take this step is because the rising labor costs and the economic slowdown that China is currently experiencing after the trade war with the United States.

The shutdown of Samsung’s last China smartphone factory comes after it decided to cut production at the plant in Huizhou in June and suspended another factory last year, underscoring stiff competition in the world’s second-largest economy.

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