In return for building an industrial campus that could employ as many as 10,000 people in Wisconsin, Foxconn Technology Group almost surely will expectÂ subsidies, tax breaks, job retraining promises, infrastructure improvements and other government incentives.
And it will expect them on a scale that by traditional standards would be staggering.
âThey do this everywhere they go,â said Einar Tangen, a Beijing-based Chinese economic expert, echoing the views of many Asian experts.Â âThey extract everything they can.”
For the past 12 years, Tangen, a 56-year-old resident of Beijing,Â has written books on Chinaâs blistering economic growth, advised Chinese cities on economic development and appeared often on Chinese state television as a commentator.
Before that, the U.S. citizen was engaged just as intensely in economic development in Wisconsin, where he went to college, achieved a law degree and served on multiple boards, including chairman of the stateâs International Trade Council.
Tangen’s East-West perspectives giveÂ him timely insight just as Wisconsin’s politicians laborÂ to lureÂ Foxconn,Â the largest supplier of made-in-China consumer electronics, to buildÂ a multibillion-dollar production facility.
Lavish and comprehensive government giveaways amount to Foxconn’s standard operating procedure even within China, where the bounty of benefits are essential to minimizing the costs of iPhones, touch-screen tablets, laptops and other electronics that Foxconn builds under other brand names.
âFree land, subsidies, tax abatements, money to support research and development â anything that can be of value,” Tangen said, echoing views expressedÂ elsewhere among Asian analysts. Chinese authorities even subsidize…