Call to Expel Foreign Investment Backfires, China Pays the Price with a Catastrophic Collapse

The exodus from China has turned into a full-blown stampede. SAS, the American tech giant once revered as the gold standard of employment, has shut its doors for good. They now join Celestica, Foxconn subsidiaries, and a torrent of Taiwanese companies racing for the exits. This is no longer just news, and it's an economic collapse unfolding in real time. When foreign capital bolts, two things vanish overnight— millions of private sector jobs and the high labor standards that once guaranteed decent wages. China is now reaping the bitter karma for its hostile foreign policy and self-imposed isolation. And the retribution has only just begun. Foreign tech exodus and the debate over China's closed-door mindset. Welcome back to Secret China. According to reports from mainland Chinese media on November 4, 2025, the American technology company SAS is withdrawing from China and laying off all 400 employees. The company required employees to complete signing their termination agreements by November 14. An employee at SAS Institute Beijing revealed that the company had announced the decision via an internal email, and a brief video meeting on October 30. SAS's official website has stopped providing the simplified Chinese version, and current recruitment notices no longer list any job openings in China. SAS entered the Chinese market in 1999, and subsequently in 2005, the company established a research and development center along with a user support center in Beijing. Notably, SAS was once recognized as the best employer in China for 17 consecutive years. The company was famous for its extremely generous welfare policies and its positive and admirable corporate culture. In the context of a growing wave of foreign companies leaving China, many domestic bloggers have expressed dissatisfaction and reacted strongly with the view. Why should we let foreigners make money and dominate our market? However, the passage questions the effectiveness of this mindset, pointing out that if this logic is followed, would pushing away international companies and tourists, causing tourist numbers to drop to 1970s levels, truly bring progress and drive innovation for the country? The text then invites the reader to consider classic examples. Japanese and American conglomerates such as NEC, Toshiba, Fuji, and IBM have left traditional business sectors to move into new technologies, AICTMRI. Meanwhile, many contemporary Chinese companies like Hisensei, Lenovo, and Baidu continue to cling to the old business model. Furthermore, even though Samsung, Amazon, and Google have left China, they still maintain their global leadership in their respective fields. As the bloggers say, our ignorance and difficulties are not caused by foreign companies or any enemy, but by some untouchable individuals domestically. A small vendor might eliminate a competitor and think they have dominated the market, but then they have to rely on their purchasing staff to sustain themselves, called internal circulation. The core issue is whether China will maintain an open, cooperative, and globally competitive mindset. If it continues to reject foreign businesses and believes that self-isolation will create strength, China will lose both the market and the momentum for innovation. Collapse of Iconic Foreign Enterprises and the Shrinking Job Market On June 30, Celestica's announcement of dissolution caused a stir on social media, leaving much regret because it was once one of the best foreign enterprises in Dongguan. Celestica is a global leader in electronic manufacturing services, headquartered in Toronto and listed on the New York and Toronto stock exchanges. The company spun off from IBM Canada in 1994 and achieved $6 billion in revenue in 2017. The Dongguan facility was established in 2004 in the Songshan Lake area, with a registered capital of $32.5 million, specializing in the production and research of high-end electronic products such as computers and communication equipment. At its peak, Celestica had nearly 10,000 employees and a presence across China, from Shanghai, Suzhou, Dongguan to Xiamen, as well as in Hong Kong and Taiwan, becoming one of the largest Canadian employers in the market. With a strong IT team and outstanding welfare policies, Celestica was once considered a dream workplace. After more than 20 years of operation, the enterprise has now officially closed. One vlogger commented that the government often creates threats that turn them into the victims. When people are misled and follow suit, the outcome remains the same, they harm themselves. When misled by distorted narratives, many people instinctively follow the crowd, yet the outcome never changes. They are the ones who suffer in the end. And then everyone begins to wonder, why are wages for ordinary workers getting lower? Why does income always feel insufficient to cover basic expenses? In truth, the answer is quite simple. Foreign investment has been frightened away, and domestic business owners are gradually giving up. And that's where everything begins to unravel. When both private enterprises and foreign companies retreat, two clear consequences immediately emerge. First, when private business owners quit, countless job opportunities disappear along with them. Second, when foreign companies pull out, the high industry standards, the very factors that once ensured better income levels for workers, also vanish. As the number of available jobs decreases while the number of job seekers rises, the labor market becomes more fiercely competitive than ever. People have to push and struggle just to secure a position. And in such a climate, wages can only fall with very little chance of ever rising. Many people used to loudly claim that foreigners earned too much in China. But when they leave, the three highs, high welfare, high income, high safety, also disappear. Without the high standards they established, industries gradually decline to a lower level, and ordinary workers are the ones who suffer the most. Nationalism, historical narratives, and the danger of self-isolation. While foreign enterprises withdraw from China, a segment of low-income earners, misled by the distorted education system, still fail to see the truth. And once again, netizens must speak up to help them understand who the real enemy is. And time and again, people protest against foreigners spending money in hotels, only to immediately rejoice when foreign businesses leave China. But hidden behind these reactions is a choice that China must face sooner or later. Open up or close off. If the choice is to close off, then continue to oppose Japan, oppose the US, because they can absolutely spend and invest elsewhere without suffering any loss. China is not the only destination. Some even ask, I welcome tourists from all countries except Japan. Is that wrong? The answer is yes. Once you decide to welcome people, you cannot selectively hate. If you decide to close off, hate the first country, and then the second, and the third will follow. Before long, the whole world will become the enemy. Another person raised the issue that the Japanese caused much loss to our nation, so we cannot forget history. I replied that remembering history is necessary. But what is worth remembering are the lessons and the shame of losing the country, not cultivating hatred. We failed in the past because we were self-isolated and technologically backward. If we close ourselves off today, aren't we repeating that mistake? The vlogger argues that if we want to know whether we should hold on to hatred or let it go, we only need to look back at the lessons of World War II. Today, do Poles refuse to let Germans stay in their hotels? Do Americans ban Japanese tourists from setting foot in Hawaii? Clearly not. During the war, Germany's blitzkrieg claimed countless Polish lives, and the attack on Pearl Harbor left a deep wound in the hearts of Americans. Yet despite all that, these nations chose to move past their hatred, look toward the future, and build new relationships founded on mutual interest and trust. Meanwhile, we still seem to be held back by the shadows of the past. Shadows the rest of the world has long learned to leave behind. According to the vlogger, for many years, the Chinese government has sown hatred against Japan and the U.S. among the populace, causing many to view the United States as the villain. But the nation that helped China the most is often forgotten. Not Pakistan or Russia, but the U.S. itself. The birthplace of the Flying Tigers, where John Layton Stewart contributed to education and universities in China, and the country that supported China's entry into the WTO, allowing it to become the world's factory. Therefore, the enemy you think is an enemy might not be, and the person considered a friend to trust might not be a real friend. Do not decide to accept or reject anyone based solely on the government's stance. When emotion dominates, we isolate ourselves. The right path is to maintain a spirit of cooperation, openness, and tolerance. China missed the age of exploration by closing itself off, and then missed the Industrial Revolution. If it had not reformed and opened up in time, it might have missed the entire internet era. And when all those opportunities are lost, you can imagine what life would be like. Just set foot in some poor regions of Africa, or the mountainous parts of China, and you will see it more clearly than ever. One netizen commented that he agreed with the vlogger on most points except for one. He believed that the support of the Flying Tigers in the war against Japan stemmed from civilization and righteousness. However, the United States helping China join the WTO was a major mistake. At that time, China was already a communist country. The expectation that economic growth would automatically pave the way for freedom and democracy was merely an illusion. Instead of changing, communist China further distorted the global trade order and threatened world civilization. Fortunately, many countries have now recognized the true nature of the CCP and understand who is associated with this regime. Foxconn's dilemma, Taiwan's retreat, and the long-term impact on China's economy. On August 28, Foxconn's subsidiary, Hongfujing Precision Industry, announced that incoming orders were no longer sufficient to sustain operations, forcing the factory to shut down by the end of the month. This decision places thousands of workers at risk of unemployment and marks yet another contraction in Foxconn's presence within central China's industrial sector. What makes this even more striking is that just a year earlier, in late July 2024, Foxconn had boldly invested 140 million in Zhengzhou Henan, with plans to build a new headquarters, expand its supply chain, and attract more international orders. Yet only 12 months later, Hongfujing Precision's facility in Huangyang announced its closure. This stark contrast highlights the increasingly evident trend of foreign enterprises withdrawing from China, as well as the broader restructuring of industries amid shifting global conditions. An industry expert noted that Foxconn's relationship with the CCP is so complex that disentangling it is difficult. Foxconn appears to struggle to escape the party's control and political pressure. Some senior executives may even have been held by the throat or threatened, tactics the CCP is widely known for. In 2024, after Foxconn signaled its intention to pull out of China, the company suddenly reversed course and reinvested, likely due to pressure from high-level officials. However, as the US-China trade war entered a more intense phase this year, Foxconn once again faced a difficult choice. Which side to stand on? Taiwanese companies more broadly are also under increasing strain due to heightened cross-strait tensions. Taking all these factors into account, many experts believe that Foxconn's complete withdrawal from China is only a matter of time. Because in the escalating confrontation between the two global powers, the company has very little room left to maneuver. Foxconn was once seen as the symbol of the wave of Taiwanese companies pouring investment into mainland China. And now, those very same Taiwanese firms have become the most prominent group heading for the exit. Do you recognize this place? A vlogger asks in his video. Do you know how many Taiwanese companies have already fled? And how long can the ones still here hold on? Before 2020, Kunshan was a goldmine for Taiwanese businesses. At one point, 70% of the world's laptops were produced here. Giants like Apple and Dell had to line up for assembly slots. Factory owners back then had nothing to do but count their money until their hands grew tired. The slogan echoing through the workshops was, over time, push it to the limit. Orders take them all. Lately, everything has been escalating. Rent has increased. Workers' wages have increased. Raw materials are more expensive. Environmental inspections are stricter, while many orders have shifted to Vietnam. Once called the Kunshan speed, it has now become the Kunshan difficulty. Businesses now have to calculate not only materials, labor, shipping, and logistics, but also the factor of safety. Therefore, many Taiwanese businesses are forced to move to Southeast Asia. Another vlogger shared about the quietness of Kunshan after Taiwanese businesses withdrew. Do you know which factories have left Kunshan? He said. Since the beginning of the year, many factories like Foxconn, Compal, and Westron have left. And I noticed the area is much quieter. Before, when I went to small shops, the owners were always cheerful. Now they are all very sad. Breakfast places, lunch diners, clothing stores. Business has all declined. The volume of people passing by has dropped sharply. The area that was once vibrant has lost its vitality. Even my shop is quieter. In fact, Kunshan was built around these factories. Each factory not only created jobs internally, but also created opportunities for small vendors like us. We are truly grateful to the factories that came to Kunshan. But when they leave, it's very sad for us. Some people oppose free competition and open-door policies, wanting to return to a closed development model. The difficulties caused by market competition, challenging startups, recession, reduced income, hardly affect them or touch their core interests. The burden falls on society, while they suffer very little and may even benefit from concentrated resources. The lower the competition, the more resources are concentrated on a small group and the greater their advantage. One netizen made a sharp observation. The CCP actually does not want foreign capital to withdraw because the dream of a great leap forward to dominate the world is still unfinished. However, their nature is completely antithetical to the free world led by the US. When they were fully developed, they immediately tore off the disguise, revealing their inherent rogue face. The free world could see through this and immediately counterattack, initiating the trade war. The result? Western capital rushed out of China. To maintain their powerful empire, the CCP resorted to hawk rhetoric to brainwash the populace, covering up diplomatic failures and economic mistakes. The more they fear capital flight, the more they try to act like they don't need it. And the more they act like they don't need it, the faster the capital runs. Truly a vicious cycle. Gradually, the people are waking up. The rock they lifted with their own hands ultimately fell on their own feet. Those who know the truth are no longer willing to remain silent. Everyone will eventually realize the one who will overthrow the CCP is the CCP itself. Thank you for watching Secret China. 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